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2012 Kelloggs CRR

2012 Kelloggs CRR

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Better Days, Brighter Tomorrows

2012 Corporate Responsibility Report Welcome
Kellogg Company’s corporate responsibility efforts aim to help create even better days and brighter tomorrows for our consumers, employees, customers, communities and the environment. This 2012 Corporate Responsibility Report documents our continuing global progress in four key performance areas, or pillars: Marketplace, Workplace, Environment and Community. It also addresses the topic of Hunger Relief, which cuts across all of these areas. The Overview includes a message from our president and CEO, as well as information about company governance, our business strategy, our corporate responsibility strategy, stakeholder engagement and more. We welcome your feedback on our reporting at corporateresponsibility@kellogg.com. As we have done in previous years, we will make a one-time $5 donation to the Global Foodbanking Network for every person who sends feedback through Nov. 1, 2013, on this report, up to $10,000 total.

See the Our Commitments page to read about Kellogg Company’s public commitments on the following topics: • Operating an ethical company • Sourcing responsibly • Environmental progress in our own operations • Promoting sustainable agriculture • Continuously improving the sustainability of our packaging • Helping to end deforestation globally by responsibly sourcing: -Palm oil -Forest and paper products -Soy • Helping to decrease greenhouse gas emissions from refrigeration • Responsible product marketing • Nutrition education • Reducing hunger

Overview
At Kellogg Company, we know that corporate responsibility is essential to our current and future success as a business. That’s why we have created strategies, governance structures, corporate policies, commitment statements and codes of conduct that help to embed corporate responsibility into our everyday operations. And, we regularly engage with a broad array of stakeholders to gain insights into the ideas and opinions of people outside of our company.

2012 Corporate Responsibility Report

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OVERVIEW
Executive Message
At Kellogg Company, we are guided by our unwavering belief in even better days and brighter tomorrows. And we have been since our company was founded, more than 100 years ago. Back then, Kellogg Company was a small, family-owned business selling just one product – Kellogg’s Corn Flakes®. Today we are a large public company selling a broad array of cereals, snacks and frozen foods in 180 countries around the world. In May 2012 we grew even larger with our acquisition of the Pringles business from Procter & Gamble. And in September, we continued to expand our global footprint with our announcement of a joint venture in China with Wilmar International Limited. This change in our scale and scope did not happen overnight. Instead, it’s been a steady process of long-term sustainable growth – an evolution focused not only on the bottom line, but on building our business in a way that benefits our consumers, employees, customers, the communities in which we operate, the environment and society as a whole. From the outset, for example, one of the primary drivers behind founder W.K. Kellogg’s business was to help shift American eating habits away from heavy, fat-laden breakfasts to lighter, healthier and more grain-based meals. Our Vision today – to enrich and delight the world through foods and brands that matter – builds on this legacy. So too does our Purpose – nourishing families so they can flourish and thrive. Even our focus on grains has not changed, as most of our products today are still grain-based and full of important nutrients. As from the beginning, we remain focused on responsible business leadership, offering foods that delight, making a difference in our communities, and delivering long-term, sustainable growth. Guided by our corporate K Values™, we are seeking to drive solid business results while holding ourselves to high expectations. To do this, we have integrated the principles and practices of corporate responsibility into our everyday work. This Corporate Responsibility Report – our fifth – describes our efforts and results in 2012. Along this journey, we have found what many others know too – that corporate responsibility and growth are not mutually exclusive. In fact, the aspects of corporate responsibility – such as nutrition, employee wellness, workplace diversity, environmental performance, sustainable agriculture and philanthropy, to name just a few – can and do help to support our company’s continued success. We see tremendous opportunity for advancement in the health and wellness space, for example, and we expanded our product offerings in this area in 2012, as discussed in the Marketplace section of this report. Our Special K® foods, which fit in this category, are delighting our consumers and have been doing very well. And we have boosted production capacity for our vegetarian MorningStar Farms® frozen food offerings, which have terrific nutrition and environmental benefits, especially when compared to their meat-based counterparts. Nutrition enhancements to existing products also help us succeed in the marketplace. Enhancements such as adding fiber, whole grains or protein to a product are good for our consumers and good for our business, as demonstrated by increased sales. With all of our products, from our kitchen to yours, we take pride in making nourishing, enjoyable foods that are sourced, produced and marketed responsibly.Through our philanthropic work – which is detailed in the

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OVERVIEW
Executive Message, cont.
Community section and the special Hunger Relief section of this report – and inspired by our founder, we strive to make a difference in our communities around the world. In early 2013, driven by our belief in the power of breakfast, we unveiled a more targeted social responsibility strategy that emphasizes hunger relief and complements our business as a food company. Because one in eight people around the world face food insecurity, we will provide 1 billion servings of cereal and snacks – more than half of which are breakfast – to children and families who need it most by the end of 2016. We believe in the power of breakfast and are committed to expanding our support of breakfast clubs that provide morning meals and important nutrition to schoolchildren. We also actively partner with food banks in communities around the world and provide important food donations to those impacted by disasters. In total, we provided $13 million in cash and $39 million in food to nonprofit organizations during 2012. While the business value of charitable giving may be hard to quantify, it builds on the legacy of our founder and forms an essential part of our identity as a company. And like so much of our corporate responsibility work, it’s also simply the right thing to do. As discussed in the Workplace section, in 2012 we broadened the reach of our Feeling Gr-r-reat™ health management program for employees in the U.S., primarily in an effort to better engage our sales and distribution employees, who are spread out around the country. Programs like this benefit our employees and their families, but they also benefit our business, since healthy, active workers help curb the company’s rising health care expenses. We also put an intense focus in the past year on bolstering our workplace safety performance, and we’ve seen terrific results. In fact, more than 100 Kellogg locations globally (manufacturing sites as well as sales and administrative office locations) had a Total Recordable Incident Rate (TRIR) under 1.0, which is outstanding. Companywide, our TRIR decreased 19 percent in 2012 compared to 2011. It’s essential to provide a culture and work environment that keeps our employees safe and healthy; low injury rates also help morale and decrease workers’ compensation-related costs. Given the changing demographics of our consumer base, the diversity of our workforce is an important driver of our ability to understand and meet the needs of consumers for decades to come. Our workforce, and particularly our leadership, is not yet as diverse as we hope it will become. But we are working hard to improve that, and a number of external organizations have recognized us for our efforts. This year, for instance, we were named for the first time to DiversityInc’s list of Top 50 Companies for Diversity. In the environmental arena, it’s self-evident that reducing energy use, water use and waste is good for the environment and also reduces costs in the long term. We have made good progress toward our 2015 goals for water use and waste to landfill. In the areas of energy use and greenhouse gas emissions, we have more work to do. Some of our facilities have made excellent strides in all areas; our plant in Rome, Georgia, for instance, has reduced water use and energy use (per metric tonne of food produced) by 80 percent and 23 percent, respectively, since 2005. See the Environment section for detail on our efforts in these areas.

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OVERVIEW
Executive Message, cont.
We are also engaging more regularly with the farmers who grow grains for our suppliers, as discussed in the Sustainable Agriculture section. In Nebraska, for example, we’ve been working with corn farmers for four years now, helping them to measure and analyze their farm inputs (e.g., water use and fertilizer use), so they can identify best practices that will reduce their environmental footprint and improve their efficiency. We’re also working with rice growers in Louisiana and Spain, among others. We consider this work to be an essential investment in our long-term future (and the health of the planet), because to operate successfully for another century, we need a continuous, steady supply of high-quality grains. Helping to promote sustainable agricultural practices today will help ensure that the growers, and the grains they nurture, are there tomorrow. We know we have an extraordinarily bright future ahead. And we have an opportunity – an obligation, even – to increase our positive impacts on society and the environment and enable our people to progress and improve, even as we also work to grow our business. In short, we welcome the chance to continue to help create better days and brighter tomorrows for everyone we touch.

John Bryant
April 2013

President and Chief Executive Officer

2012 Corporate Responsibility Report

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OVERVIEW
Company Profile
With 2012 sales of more than $14 billion,1 Kellogg Company is the world’s leading producer of cereal, second-largest producer of cookies and crackers and – through the May 2012 acquisition of Pringles – second-largest savory snacks company. In addition, Kellogg is a leading producer of frozen foods. We are a publicly traded company headquartered in the U.S. in Battle Creek, Michigan. We operate through four regions: North America, Europe, Latin America and Asia Pacific. To learn more about our company, visit www.kelloggcompany.com.

KELLOGG COMPANY OPERATIONS
Worldwide employees Countries where our products are marketed Countries where our products are manufactured Manufacturing facilities 2012 net sales 2012 net income attributable to Kellogg Company 2012 shareholder return 2012 diluted earnings per share 2012 cash flow2 2012 operating costs 2012 capital expenditures 2012 income taxes 2012 community investments Approx. 31,000 180+ 18 56 $14.2 billion $961 million 13.1% $2.67 $1.2 billion $12.6 billion $533 million $363 million $52.3 million

NUMBER OF EMPLOYEES BY REGION

COUNTRIES WITH KELLOGG MANUFACTURING OPERATIONS

1 2

Data in this company profile and throughout the report are in U.S. dollars, unless otherwise noted. Kellogg-defined cash flow is net cash provided by operating activities reduced by capital expenditures. The company uses this non-GAAP financial measure to inform management and investors of the amount of cash available for debt repayment, dividend distribution, acquisition opportunities and share repurchases.

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OVERVIEW
Business Strategy
Our Vision as a company is to enrich and delight the world through foods and brands that matter. And our Purpose is to nourish families so they can flourish and thrive. Our strategy for fulfilling this Vision and Purpose is straightforward: We want to continue to be the global leader in cereal. We want to be a global player in snacks. We want to be a regional leader in frozen foods. And, we want to expand further into emerging markets. In 2012 we took significant steps to move from being a global cereal company and a U.S. snacks company to being a global cereal and a global snacks company. In May 2012 we finalized the purchase of Pringles from Procter & Gamble.1 This $2.695 billion acquisition nearly tripled the size of our international snacks business and makes us the world’s second-largest savory snacks company. Even more important, it gives us a strong foundation for further snacks growth in international markets. Then in September, Kellogg and Wilmar International Limited announced a joint venture for the manufacture, sale and distribution of cereal and snacks in China. Wilmar is one of the largest agribusiness and consumer food businesses in China, and the joint venture positions us well for growth in this important market. The joint venture is headquartered in Shanghai. In 2012 we also focused on: • growing our health- and wellness-related food offerings; • leveraging our brand to provide the benefits of cereal in other forms (e.g., breakfast bars and drinks); • accelerating the growth of our U.S. frozen food business; • brand building (i.e., advertising and consumer promotions), especially in key growth markets in Asia Pacific and Latin America; and • innovating new products. In the area of innovation, we launched a number of new products, including Krave® cereal (which launched in the U.S. and Mexico after previously debuting in Europe), Special K® Protein Plus cereal (in the U.S.), Special K® popcorn chips (in the U.S., Canada, the U.K., and Mexico) and Kellogg’s Corn Flakes Porridge® (in South Africa), to name just a few. We feel strongly that corporate responsibility is critical to the bottom-line success of our business strategy. Decreasing energy use, water use and waste are the right things to do for the environment, but they also save us money. By promoting sustainable agriculture, we are helping to ensure that we will have sufficient supplies of the hiqh-quality food ingredients we need, at a reasonable cost, going forward. Our continuing focus on advances in nutrition science, and health and wellness, ensures that our product portfolio stays abreast of consumer needs and tastes. Given the changing demographics of our consumer base, the diversity of our workforce is an important driver of our ability to understand and meet the needs of consumers for decades to come. This report contains numerous other examples of the importance of corporate responsibility to our business. Please visit the Investor Relations section of our corporate website for more about our business strategy.

1

Because the Pringles acquisition took place mid-year, the environmental and workplace safety data in this report do not include Pringles locations.

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Our corporate responsibility strategy has been fully integrated into our business.OVERVIEW Corporate Responsibility Strategy and Governance Our company’s global corporate responsibility strategy organizes our key issues into four categories. the analysis took into account areas of importance to us and our stakeholders. or pillars: Marketplace. The ambition statements noted below drive our activities and progress in these four pillars. as noted below. 2012 Corporate Responsibility Report 7 . which also form the structure for our reporting. In the past two years we have increased incentives for our executives to drive progress in certain corporate responsibility-related areas. And in 2012. we worked with our brand leadership teams to help better leverage our corporate responsibility activities in the brands’ engagements with consumers. Environment and Community. One result of this was our webpage and videos about the origins of the simple grains that form the basis of our foods. The Our Commitments page lists these and provides links to relevant sections of the report where they are discussed in more detail. Another important aspect of our corporate responsibility strategy is our publicly stated goals and commitments. report up through to a committee of our Board of Directors. subject-matter experts for each material area report on progress to the heads of their business units. who. We used a comprehensive materiality analysis to identify the issues that fall under each of these pillars. in turn. Workplace.

Four of our facilities are also ISO 14001 certified. Other committees of the Board address responsibility-related issues as well. Our business units track and report EHS performance monthly using our EHS management system called Kellogg Cares About People & Planet. and the Manufacturing Committee reviews health and safety performance. In addition. and sustained. For example. intolerance of unsafe behaviors and conditions. Kellogg Company’s cross-functional. 2012 Corporate Responsibility Report 8 . The committee. and diversity and inclusion are now included in our executives’ bonus plan incentives. workplace safety. Specific metrics relating to food safety. We have in place an environmental. management infrastructure and operating programs. third-party audits are conducted at each manufacturing plant every two to three years. Our Board of Directors has a Social Responsibility and Public Policy Committee composed of five independent director members. In addition. Formal. product recalls and health pandemics. or K-CAPP. compliance management. which has been in existence since 1979. and of actions that harm the environment.OVERVIEW Corporate Responsibility Strategy and Governance. continuous improvement in our EHS culture and performance. including those related to health and nutrition. met twice in 2012 and oversees all aspects of our corporate responsibility approach. We conduct regular EHS audits at Kellogg facilities to ensure compliance with Kellogg policies and procedures and government regulations. We also have a global Corporate Incident Management Team to rapidly address pan-regional concerns. unwavering leadership. In the intervening years. in each Kellogg Company region a cross-functional Regional Incident Management Team assesses and manages incidents with a potential for high impact on our business. nutrition and food safety issues that have the potential to adversely impact our consumers or our business. The Board as a whole addresses many of the important issues discussed in this report. cont. the widely recognized global standards for EHS management. such as natural disasters. In 2012. work and source. Accountability for corporate responsibility starts at the top of our organization. health and safety (EHS) strategy. The strategy sets forth four “strategic imperatives” for our EHS work: personal ownership and accountability. global Emerging Technical Issues Team helps keep company leaders abreast of health. business interruptions. K-CAPP standardizes auditing. third-party audits were conducted at 21 Kellogg manufacturing plants around the globe (out of 50+). incident management and reporting at all Kellogg sites globally. It is fully aligned with ISO 14001 and OHSAS 18001. Detailed aspects of the strategy address corporate culture. the goal of which is to have zero injuries and illnesses and minimize negative impacts on the planet and the communities where we live. we conduct internal self-assessments. progress toward environmental goals is linked to remuneration for many executives’ via their personal development plans. the Audit Committee reviews environmental performance.

and consequently must be managed across organizational boundaries. 2012 Corporate Responsibility Report 9 .OVERVIEW Corporate Responsibility Across the Value Chain Addressing corporate responsibility issues strategically requires an understanding that the issues occur at multiple stages of our company’s value chain.

S. and global lists) • Reader’s Digest (Canada) – “Most Trusted Cereal Brand” • Maclean’s (Canada) – “50 Most Socially Responsible Companies” • Marketing Magazine (Canada)– “Best Corporate Reputations in Canada” • Great Place to Work Institute (Ireland) – “Best Large Workplaces” • Great Place to Work Institute (Spain) – “Best Companies with 100-250 Employees” 2012 Corporate Responsibility Report 10 . (See the Diversity Recognitions page and the Brand Philanthropy page for additional awards specific to those topic areas. as well as for the strength of our company and our brands.OVERVIEW 2012 Awards and Recognitions We are pleased to have been recognized by a number of leading organizations and publications in 2012 for our corporate responsibility efforts.) • Forbes – World’s 100 “Most Reputable Companies” • Forbes – World’s 100 “Most Powerful Brands” • Forbes – World’s 100 “Most Innovative Companies” • Forbes – America’s “Most Reputable Companies” • Fortune – “World’s Most Admired Companies” • Ethisphere Institute – “World’s Most Ethical Companies” • Interbrand – Annual “Best 100 Global Brands” • Canadian Business Magazine – “World’s Most Reputable Companies” • Corporate Responsibility Magazine – “100 Best Corporate Citizens List” • Newsweek – 2012 “Green Rankings” (both the U.

we are taking the following actions on commodities we purchase that are or can be sourced from areas of tropical deforestation: • Palm Oil: Although Kellogg is not a large buyer of palm oil. and promoting and supporting sustainable growing practices.) The Environment section of this report describes our progress toward these goals. Sourcing Responsibly We are committed to maintaining an ethical and transparent supply chain free of forced labor. and to decrease waste sent to landfill (per metric tonne of food produced) by 20 percent from 2009 to 2015. workplace safety. See the Sustainable Packaging section for information on our recent efforts. as well as in the Responsible Sourcing and Labor Standards sections of this report. a multi-stakeholder organization (of which Kellogg is also a member) working worldwide to ensure that palm oil production is economically viable. We utilize a sustainable packaging framework that focuses on improving performance in three key areas: the package-to-food ratio. we know that our most significant environmental impacts occur in our agricultural supply chain. employee engagement and philanthropy. all of the palm oil we use today is 100 percent sustainably sourced through a combination of GreenPalm certificates. environmentally appropriate and socially beneficial. In addition to our ongoing work in these essential areas. as follows: Operating an Ethical Company We are committed to operating in accordance with our K Values™ and our Global Code of Ethics. Also. percent recycled material content and percent materials that are commonly recoverable. Environmental Progress in Our Own Operations We have set environmental goals to reduce our energy use. In particular. 100 percent of the palm oil we use comes from suppliers who are members of the Roundtable on Sustainable Palm Oil. and to operating all aspects of our business safely and responsibly. This commitment is discussed on our corporate website. we have made specific commitments regarding several aspects of corporate responsibility and sustainability.5 percent reduction in this waste metric from 2005 to 2009. In fact. supplier and workplace diversity. greenhouse gas emissions and water use (per metric tonne of food produced) by 15 to 20 percent from 2005 to 2015. Helping to End Deforestation Globally The Consumer Goods Forum (CGF) pledged in late 2010 to mobilize its collective resources to help achieve zero net deforestation by 2020. Promoting Sustainable Agriculture As a responsible food company. including slavery and human trafficking. as discussed on the Living Our Values page. such as nutrition.OVERVIEW Our Commitments Kellogg Company is devoted to producing great-tasting foods that people love. we support this commitment. As a member of the CGF. The Sustainable Agriculture section details some of our specific efforts. We are thus committed to helping minimize the environmental impacts of agricultural production. mass balance and segregated supply. 2012 Corporate Responsibility Report 11 . (We set this waste goal after achieving an initial 41. assisting the agricultural sector in being more sustainable. See the Palm Oil page for more information. we have been committed to supporting the development of sustainably grown palm oil since 2009. Continuously Improving the Sustainability of Our Packaging We are committed to ensuring that our packaging is effective in protecting our foods while minimizing the materials used. This report highlights our efforts in a variety of key areas of our business. among many others.

We are thus committed to the use of sustainable refrigerants. we abide by numerous voluntary pledges in countries around the world regarding the nutrition composition of foods that are responsibly marketed to children. Responsible Product Marketing We are committed to the responsible marketing and communication of our products to help shoppers make informed choices about the foods they enjoy. in 2012 we launched a new website for health care professionals. we have not marketed to children under age 12 those products that do not meet our Kellogg Global Nutrient Criteria. • Forest and Paper Products: The first cereal box we produced more than 100 years ago was made using recycled cardboard. Of the forest product-based packaging material we use that is not recycled. Kellogg Company’s six frozen foods manufacturing plants. Also.OVERVIEW Our Commitments.. more than 99 percent is made from certified sustainably grown virgin fiber. Our Worldwide Marketing and Communication Guidelines provide a consistent global framework for responsible marketing practices. This commitment is part of our new corporate philanthropy initiative. which we review annually to ensure we communicate nutrition information with transparency and openness.S. This material is certified either through the Sustainable Forestry Initiative or the Forest Stewardship Council. In 2012. These concepts are core to our Kellogg Company Nutrition Policy. We have committed to providing 1 billion cereal and snack servings1 – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. Instead. to give health care professionals across the world access to the latest research. Since Jan. Ammonia is a natural refrigerant and is not a greenhouse gas. We remain committed to this sourcing strategy to ensure our soy is not from deforested lands. with some supply for our Latin American operations sourced from Argentina.S. 84 percent of our food cartons globally were made from recycled fiber content. enabling them to make informed choices that meet their dietary needs. Kellogg does not market any products to children under 6 years old.kelloggsnutrition. all of which are in the U. information and tools. we purchase soy almost exclusively from the U. cont. and 48 percent of the corrugated material we use globally to transport our products are made from recycled content. • Soy: We do not purchase soy products from tropical deforested regions. www.com. 1. and we remain committed to the sustainable use of forest products. 2009. We are committed to having 100 percent of our virgin stock certified sustainably grown by the end of 2013. Also. 2012 Corporate Responsibility Report 12 . launched in early 2013 and called Breakfasts for Better DaysTM. Helping to Decrease Greenhouse Gas Emissions from Refrigeration CGF members also pledged in 2010 to take action regarding refrigerants. Nutrition Education We are committed to educating consumers about nutrition. use ammonia in their large-scale refrigeration systems.. Reducing Hunger 1 A serving is approximately 1 ounce. which are a significant and growing source of greenhouse gas emissions and are extremely more potent than carbon dioxide.

• We are all accountable. see the Marketplace section of this report. while aiming to help all Kellogg employees act with integrity. all employees with access to company computers are required to complete an online training course that takes them step-by-step through our Global Code of Ethics. The K Values are incorporated into our employee performance reviews. We proactively provide targeted training on topics ranging from the Foreign Corrupt Practices Act and the U. Our Corporate Governance Guidelines. • We are passionate about our business. Our global Supplier Code of Conduct requires our suppliers to promote ethical business practices within their own operations and expressly prohibits corrupt business practices.OVERVIEW Living Our Values Kellogg Company is committed to conducting its operations in a legal. • We act with integrity and show respect. In the U. For information on our Supplier Code of Conduct. Our K Values™ guide our approach to business and engagement with our stakeholders. practical guidance. so that employees can raise ethics questions and concerns confidentially and anonymously. we will discuss the new versions in our next report. And. In addition to incorporating our Supplier Code of Conduct into our contracts.S.. • We strive for simplicity. Together. We understand it is important for all employees to feel they have a safe and confidential way to share any ethical concerns. • We have the humility and hunger to learn. our Global Code of Ethics and additional information about our governance systems are available on our website. ethical and responsible manner. We maintain both a hotline. passion. we use electronic billboards and posters in our manufacturing facilities to communicate about ethics and compliance issues with employees working in our plants. our brands and our food. they provide clear. We are also committed to an ethical and transparent supply chain that utilizes responsible sourcing. accountability. called the Ethics Alert Line. and a web-based reporting tool. while our Global Code of Ethics guides the business practices of all employees worldwide. as well as our efforts to develop shared audits with others in our industry. • We love success.K. and a cross-functional team of senior leaders oversees investigations and has input into certain discipline decisions to help ensure consistency. Senior management provides significant oversight into our ethics and compliance program. 2012 Corporate Responsibility Report 13 . In 2013 we plan to update and reissue our Global Code of Ethics and our Supplier Code of Conduct. humility and respect. we include responsible sourcing training opportunities in our supplier events. Bribery Act to eliminating forced labor in the supply chain.

email and postal address listed on websites) Sections of This Report with Examples Employee Engagement Diversity and Inclusion Employee Safety Labor Standards Employee Initiatives Living Our Values Consumers Responsible Product Marketing Consumer Information and Labeling Fiber and Whole Grains Nutrition Education 2012 Corporate Responsibility Report 14 . we regularly engage with stakeholders on a wide range of issues. Beverage and Agriculture Sector Working Group. our global company intranet • Global Opinion Surveys • “Town hall” meetings • Employee Resource Groups • Diversity Councils • Safety committees • Union representation • GoGreen teams • Anonymous hotline and web-based reporting tool for ethics or compliance concerns • Advertising.OVERVIEW Stakeholder Engagement As a global. publicly owned company. the Consortium uses collaborative processes to drive scientific research and develop standards and information technology tools to enhance the ability to understand and address the environmental. social and economic implications of products. The right-hand column includes links to pages elsewhere in this report that contain specific. The report was written for a wide range of interested stakeholders.. The table below lists our key categories of stakeholders and the primary ways in which we engage and communicate with them. Kellogg sits on the Consortium’s Food.g. In fact. For the past several years we have offered incentives for providing feedback: For every person who submitted a comment about the report. Kellogg made a one-time donation of $5 to The Global FoodBanking Network – up to $10. Specifically.000 in a given year. Stakeholder Type Employees Mechanisms for Engagement and Communication • K Connect. In 2009 Kellogg was one of the founding members of The Sustainability Consortium. related examples. we value feedback on it. which is a network of leading companies seeking to promote sustainability throughout the product lifecycle of consumer goods. marketing and promotions (e. we understand the importance of listening to and communicating with the broad array of stakeholders interested in how we conduct our business. And. Also. we would like to mention one important industry coalition in which we are involved that is not discussed elsewhere in this report – The Sustainability Consortium. One key stakeholder engagement mechanism not mentioned in the table is this Corporate Responsibility Report. the new Kellogg Family RewardsTM promotion) • Labeling • Corporate website and regional websites • Nutrition website • Press releases • Daily interactions with our Consumer Affairs employees (phone number.

including. cont.. for example: + Consumer Goods Forum + The Sustainability Consortium + Global Environmental Management Initiative (GEMI) + Carbon Disclosure Project (CDP) + American Institute for Packaging and the Environment (AMERIPEN) + Sustainable Packaging Coalition + AIM-PROGRESS + Supplier Ethical Data Exchange (SEDEX) + Roundtable for Sustainable Palm Oil + World Cocoa Foundation + Field to Market + Sustainable Agriculture Initiative + Ontario Cereal Industry Research Council + Heartland Plant Initiative (In addition. see the Industry Participation page for a list of industry groups that focus specifically on food safety.OVERVIEW Stakeholder Engagement. Stakeholder Type Dietitians and Health Care Professionals Mechanisms for Engagement and Communication • Professional conferences • Nutrition website • Published summaries of key research • Kellogg’s Nutrition and Health Institute in Mexico (Instituto de Nutrición y Salud) • Working group of fellow suppliers to a major customer • Joint philanthropic initiatives • Coalitions and partnerships (e.) Sections of This Report with Examples Nutrition Education The Benefits of Breakfast Cereal Customers Agriculture Partnerships Hunger Relief Community Our Commitments Our Commitments Responsible Sourcing Product Safety and Quality Supplier Diversity Our Work with Grain Breeders and Growers Our Commitments Industry Participation Obesity and Weight Management Product Safety and Quality Responsible Sourcing Our Waste Performance Sustainable Packaging Agriculture Partnerships Palm Oil Suppliers Industry 2012 Corporate Responsibility Report 15 .g. the Consumer Goods Forum) • Supplier Code of Conduct • Food Safety Summits • Audits • Supplier diversity program • Partnerships with and assistance to grain growers and millers • Trade association memberships • Industry forums. partnerships and coalitions formed to address specific topics.

. cont. the United Way) and customers • Engagement with local. including. for example: + Roundtable on Sustainable Palm Oil + World Cocoa Foundation + Carbon Disclosure Project (CDP) + Field to Market + Sustainable Rice Platform • Participation in conferences • Informal discussions on specific topics of interest • Philanthropic donations • Submission of environmental risk assessments and data to public clearinghouses • Employee volunteer activities • Partnerships with nonprofits (e. through our Government Relations function • Compliance with all relevant laws and regulations • Contribution to a broad array of policies important to doing business as a responsible company Sections of This Report with Examples Overview Nongovernmental Organizations Obesity and Weight Management Diversity and Inclusion Environmental Management Water-Related Risks and Opportunities Climate Change Risks and Opportunities Sustainable Packaging Agriculture Partnerships Palm Oil Communities Employee Initiatives Community Hunger Relief Responsible Product Marketing Industry Pledges Environmental Management Transportation Initiatives Climate Change Risks and Opportunities Product Safety and Quality Governments 2012 Corporate Responsibility Report 16 . state and federal governments (engagement varies based on entity) • Provision of expertise to regulators • Advocacy.OVERVIEW Stakeholder Engagement. Stakeholder Type Investors Mechanisms for Engagement and Communication • Annual report • Annual shareholders meeting • Quarterly earnings calls • “Investor days” • Daily interactions via our Investor Relations function • Investor section of corporate website • Membership in multi-stakeholder committees and dialogues.g.

M. one of our primary missions is to educate the public about good digestive health. Our organization has had an affiliation with Kellogg for many years. One survey we conducted found an alarmingly high prevalence of diarrhea. And unless you have a high-fiber cereal breakfast. Indeed. constipation and bowel pain among children – as high as 40 percent. Australia “The not-for-profit Gut Foundation is dedicated to the treatment and prevention of gastrointestinal diseases.D. Fiber is critical to good digestive health. Cereals and grains often contain more fiber. and that relationship has become stronger within the last year or two. If we can teach young children about the importance of fiber. Our organization’s main goal is promoting health.” 2012 Corporate Responsibility Report 17 . we have been engaged in a pilot study on fiber intake in young children to see if we could improve their digestive health by adding a high fiber cereal – Kellogg’s® Sultana Bran – to their diets. and yet that may not be enough. They think eating more fruits and vegetables will take care of things. ranging from colon cancer to irritable bowel syndrome. you are unlikely to achieve a high-fiber daily intake. and we would like to see food companies do more to promote products with fiber in them. Founding President & Katherine Collings Research Dietitian The Gut Foundation. many people eat a similar thing for breakfast day in and day out.OVERVIEW Marketplace Perspective Terry Bolin. yet many people don’t understand where fiber comes from. and we tend to form views from an early age about what we like to eat in the morning. Kellogg has enabled us to carry out surveys of children and their parents about the incidence of digestive problems so that we can plan some interventions for improvement. We’re now looking to expand the study into a much broader cohort of children. they’re more likely to make good choices when they grow up. Recently. We focus especially on the need for people of all ages to adopt diets with more natural fiber. Breakfast is a habitual meal. As the leading authority on these topics in Australia. Kellogg and other food companies have come a long way in terms of their nutritious food offerings – in particular high-fiber Kellogg’s® All-Bran® and Kellogg’s® Sultana Bran products. or three times the expected rate.

It took place at the Battle Creek plant. This speaks highly of the Kellogg corporate culture and is a wonderful example of Kellogg’s corporate citizenship. went truly above and beyond – for example. already provide to their Guard and Reserve employees. The award presentation ceremony was a profoundly moving and rewarding experience for me.’ At the same time. and so forth. Department of Defense (DoD).S. we help to resolve any conflicts that arise between employers and employees through an informal mediation processes. Retired) State Chairman for Michigan Employer Support of the Guard and Reserve U. Since 2010. and there must have been 120 people in the room. providing a cash bonus upon his return.” 2012 Corporate Responsibility Report 18 . Second.S. The DoD realized that military Reservists and National Guard members would likely be called upon to serve more frequently – as they indeed have been. and between people with no military experience and veterans. The ESGR was founded in 1972 around the same time the military draft ended in the U. We recognize that many people make sacrifices when a Guard member or Reservist deploys – including. we work to educate both employers and Guard and Reserve employees about their rights and responsibilities under the law (including.S. the last thing they should have to worry about is whether they still have a job back home. by sending him care packages when he was deployed. that an employee’s job be available to him or her after deployment ends). We’re a largely volunteer organization. like Kellogg Company. especially younger veterans. Over the years we have carried out our mission in three primary ways. I got to know Kellogg Company last summer when a Marine Corps Reservist who works at the Battle Creek plant nominated his supervisor for the ESGR’s Patriot Award. Navy. This broadening of our mission occurred in light of some startling statistics. employers who must hire temporary staff and co-workers who must pick up extra shifts. with about 4. It was great to see the high level of mutual respect there – between management and hourly plant workers. for instance. In this case.800 volunteers nationwide. maintaining his health insurance coverage. And third. including high unemployment rates for veterans. Our Michigan ESGR committee supports 19. we’ve taken on a fourth task – acting as a bridge between prospective employers and anyone with military experience.000 employers.000 currently serving Guard members and Reservists and their 7. and Kellogg. The ESGR was established to help create a culture in which military service is valued and supported by every civilian employer in the United States. First. most people recognize that when a Reservist or Guard member returns from a dangerous deployment. especially in the last two decades. the Reservist noted the ways in which his supervisor.OVERVIEW Workplace Perspective Captain Paul Ryan (U. we recognize the outstanding support that many civilian employers.S. which honors individuals and companies who support employees serving in the Guard and Reserve. That’s why our motto – and our guiding principle – is ‘We All Serve. Department of Defense “Employer Support of the Guard and Reserve (ESGR) is an agency of the U. Each state has its own committee. including Kellogg Company’s CEO and other senior executives. for example.

At WWF.. Through WWF’s Supply Risk Analysis. On the upside. Identifying risks is only the start of the process. when we have a global population of more than 9 billion with increased prosperity and consumption worldwide.OVERVIEW Environment Perspective Dave McLaughlin Vice President. and it will take time. which helps prioritize areas for action. We’ve seen a lot of volatility in the price of commodities in the past five years.e. for textile. trade policy. because they can be a real force for good. We have a global drought going on. tissue and paper products). In each case. identifying the biggest environmental impacts through their sourcing of commodities in specific areas. as well as for fiber (i. the key issue is water conservation. That’s a great example of what can be done. they also present a huge opportunity with big potential benefits. Innovation is required. And what drives us is this question: In 2050.S. our mission is to conserve nature. Agriculture World Wildlife Fund “At World Wildlife Fund (WWF). from carbon emissions to depletion of biodiversity to labor rights and water use. They have to be part of the solution. WWF has worked with Kellogg to complete two supply-chain risk assessments. we help companies evaluate 30 broad risk categories. high demand (for biofuels as well as food) and crop failure. It also might involve designing sustainability into products from the outset. Over the past couple of years. Kellogg now has additional opportunities to advance sustainable agriculture by continuing to purchase certified sustainable products and engage with suppliers to improve the sustainability of how commodities are grown. and two of the Great Lakes are at their lowest levels of all time. Just look at the Consumer Goods Forum and their members’ public commitment to eliminate deforestation from their supply chains by 2020. for instance. But I fully encourage Kellogg and all companies to continue to make these issues a priority. There is no single ‘best practice’ for companies to adopt. With grain commodities. people are having trouble floating boats on the Mississippi River. WWF provided input and assessed the environmental and social risks to their commodity supply chains. In the U. This involves re-thinking procurement – developing true partnerships with growers and engaging in long-term contracts. This has been due to drought. This presents a concern for any company that depends on agriculture for its raw ingredients. one with Kashi and another with Kellogg Europe. That’s starting to change. Due to outsourcing and the widespread use of commodity traders. how will we meet society’s demands for fuel and food.” 2012 Corporate Responsibility Report 19 . most companies have not had relationships with the growers of their agricultural ingredients. climate change. so that they have smaller environmental footprints. as the challenges facing agriculture pose material risks to every business.. and still leave room for nature? Business has to be at the table to help answer that question. we’re helping companies gain better visibility into where their agricultural commodities come from and the associated environmental and social risks. Kellogg brought in external stakeholders to sit down with their team to identify potential concerns in their respective supply chains.

Hunger can be found everywhere. But that doesn’t make them any less startling. With funding from Kellogg. But even if only 5 percent of kids in my area need breakfast. such as war or famine. It seems so easy and straightforward – that a healthy diet and physical activity can improve individual health. That’s a shocking statistic. government’s free.000-member volunteer network or taking our “Every Kid Healthy” pledge. I couldn’t believe what I learned about the magnitude of the problems of hunger. When I joined Action for Healthy Kids (AFHK) about six years ago. We as a country have to understand that obesity is very much intertwined with hunger.and reduced-lunch programs also participate in school breakfast programs. Although these grants are modest – they range between $2. from inner-city neighborhoods to rural communities. In other cases. malnutrition and poor health in America. In the Chicago suburb I live in. There are many obstacles for children to get breakfast before school. but it’s not necessarily less complex. AFHK awards grants to schools to help them set up or expand breakfast programs to take advantage of the national School Breakfast Program. when taken in the context of a nearly 8 percent unemployment rate. Together they represent the public health challenge of our lifetime. But once I immersed myself here. and there are simple things each of us can do today that make a difference.7 million kids often go hungry in this country. One of the best ways to help children succeed is by feeding them a healthy breakfast. But that’s not always a realistic option for American families.S. Every American has a role to play in combating this epidemic.5 million adults and 16. The numbers make sense. schools haven’t established breakfast programs because they don’t have the staff to run them. that’s 5 percent of kids who are going to school hungry. On average. when it comes to feeding our children and families..” 2012 Corporate Responsibility Report 20 . some countries have specific hunger problems that are exacerbated by other issues. we know that less than half the children who participate in the U. The other thing they can do is to advocate for organizations like ours and encourage people to get involved by joining our 40. And yet.5 million breakfasts. we face some of the most challenging problems you could imagine. Food companies have a clear role to play in helping to solve our country’s malnutrition and obesity epidemics. for example. And you can’t point to just one factor that’s the source of the problem. though the need has grown in recent years. Hunger in America may be different from hunger in developing nations. Some 33.000 – they reap terrific results. One thing I would encourage is for them to keep making kid-friendly and healthy foods – foods that kids find appealing. my school doesn’t have a breakfast program because there isn’t a tremendous need. I liked to think of myself as an informed citizen. But here in the U. the programs we fund see a 40 percent growth rate of kids participating in breakfasts in the first year. Of course. Malnutrition and obesity are two sides of the same coin – they both may relate to a lack of healthy eating.S. The latest research shows that kids who eat breakfast have better school attendance and higher school achievement.OVERVIEW Community Perspective Rob Bisceglie Chief Executive Officer Action for Healthy Kids “I spent many years working for nonprofit organizations that focused on international development work. That doesn’t mean these kids aren’t hungry in the morning. children can’t get to school early enough to take advantage of programs that do exist. an extraordinarily valuable federal resource for hungry kids. In some cases. we have helped schools serve hungry kids an additional 8. in fact.000 and $5. Since the program’s inception.

2 3 2012 Corporate Responsibility Report 21 . Lost Time Incident Rate = (the total number of incidents that resulted in days away from work x 200. which we acquired mid-2012. offices or warehouses.000 hours)/total labor hours worked. and provides the standard base for the incidence rates. Total Recordable Incident Rate = (the total number of recordable cases x 200. The data for all years have been adjusted to remove our Navigable Foods business in China.000 hours represents the equivalent of 100 employees working 40 hours per week. 50 weeks per year. Also. the data do not include the Pringles plants. the 200.OVERVIEW Summary of Key Data 1 Our environmental data are for our global manufacturing facilities only. In this formula and the one for Lost Time Incident Rate. They do not include our transportation fleet.000 hours)/total labor hours worked. which we divested in 2012.

From our selection of breakfast foods. frozen meals and snacks. we cater to a broad array of dietary needs and taste preferences. we have one overarching purpose: to nourish families so they can flourish and thrive. 2012 Corporate Responsibility Report 22 . marketing and selling them safely and responsibly. Responsible Product Marketing We kicked off two marketing campaigns designed to motivate children to stay fit and strong. we aim to produce great-tasting foods that people love. while manufacturing.Better Days. Brighter Tomorrows 2012 Corporate Responsibility Report MARKETPLACE As a global food company. Marketplace Highlights Nutrition and Health We launched a variety of new products to address consumer health needs. We also keep abreast of advances in nutrition science to determine how our company can help contribute to health and wellness. Each day.

2012 Corporate Responsibility Report 23 .S. Responsible Sourcing We are working within our industry to develop a standard supplier code of conduct. PROTEIN + Case Study: Reformulating Special K® Protein Plus We launched an improved version of Special K® Protein Plus to make it more relevant for today’s consumers.MARKETPLACE Marketplace Highlights. NUTRITION FACTS NUTRITION FACTS Calories Amount Per Serving Calories Saturated Fat Trans Fat Serving Size (312g) Servings Per Container Serving Size (312g) Amount Per Serving Servings Per Container Saturated Fat Trans Fat Cholesterol Cholesterol Sodium Total Carbohydrate Sodium Dietary Fiber Sugars Total Carbohydrate Dietary Fiber Protein Vitamin A Calcium Vitamin CSugars Iron Protein Vitamin A Calcium Vitamin C Iron Product Safety and Quality We tied food safety performance to the compensation of our senior leaders. to provide consumer-friendly nutrition information on the front of product packages. cont. Consumer Information and Labeling We continued rolling out new “Facts Up Front” product labeling in the U.

which we review annually to ensure we communicate nutrition information with transparency and openness. and we’re proud of our successes to date. from heart health to kids’ growth and development.” We continue to look for ways to drive innovation and further enhance the nutrition value of our products. whole grains. Kellogg. W. sugars and fats across our product portfolio. We’re putting particular focus on creating new foods that offer nutrition. We believe that all foods have a place in the diet – with balance and moderation. We introduced many new and updated products in 2012 and early 2013 that respond to consumer nutrition needs. to name some of our primary efforts. convenience and great taste – attributes for which we’ve always been known. We are committed to further improving existing products (and developing new ones) by increasing the nutrition elements that are essential to good health – fiber. enabling them to make informed choices that meet their dietary needs.K.MARKETPLACE Nutrition and Health Our founder. protein. We also have emphasized responsibly reducing sodium. left his company a century-old legacy that still guides us today: the desire to make “quality products for a healthier world. from digestive health to weight management. Our core brands address many health needs. – 2012 Corporate Responsibility Report 24 . These concepts are core to our Kellogg Company Nutrition Policy. vitamins and minerals. We’re also committed to educating consumers about nutrition.

2012 Corporate Responsibility Report 25 .MARKETPLACE Nutrition and Health. cont.

In 2012. France and Australia. Mexico India Key Regions1 We have reduced the amount of sodium in our ready-to-eat cereals in our key regions1 by 18 percent between 2007 and 2012. Canada U. being physically active and maintaining a healthy weight are key strategies for managing cardiovascular disease – the leading cause of death in the U.S.. We also brought to market the new Kellogg’s Raisin Bran Cinnamon Almond® to give consumers another way to enjoy a heart-healthy breakfast. All Bran®.. the U..K.139(11):2220S-6S. we lowered sodium in Rice Krispies® and Kellogg’s Corn Flakes® by 30 percent. De Moura FF. In Australia. This reduction also lowered sodium in five other popular cereals that use these two cereals as a base. 2009 Nov. including Kellogg’s Raisin Bran®.3945/jn. Canada. we reduced the sodium in Kellogg’s Corn Flakes® from 950 milligrams (mgs) to 767 mgs per 100 grams of cereal – a reduction of nearly 20 percent.109. Lewis KD.K. See the map below for some of our recent initiatives. J Nutr. Overall in Australia. Europe In India. we lowered the sodium in Rice Bubbles® and Kellogg’s Corn Flakes® by 20 percent – eight months ahead of our targeted date.S.112383] 2012 Corporate Responsibility Report 26 . In Europe. Smart Start® and FiberPlus®.2 1 2 Our key regions are the U.S. we added a Heart Healthy Selection® logo to eight varieties of U. Eating more fiber-rich grain foods can help manage the risk for heart disease. Mexico. heart-healthy cereals that are a good source of fiber. Canada and Mexico to provide consumers with new options for healthier snacking. [doi: 10.MARKETPLACE Product Enhancements Around the World We apply the latest in food and nutrition science to continue to enhance our foods and make a positive impact on consumers’ healthy lifestyles. Australia Heart-Healthy Label Eating well. Falk MC Applying the FDA definition of whole grains to the evidence for cardiovascular disease health claims.K. We expanded our popular Special K® Cracker Chips to the U. we have cut sodium in our cereals by up to 59 percent since 1997.

for example. and we’re pushing hard to create new products in this area. Our Special K® brand. Kellogg offers a broad range of great-tasting snack foods to meet consumer needs – from portion-controlled packages to help consumers snack sensibly to cereal bars that can supplement a diet with fiber and important nutrients. giving our company an entry to selling other Kellogg products. is focused on developing “smart” snacks for those managing their weight. We will be exploring how we can apply these technologies to other Kellogg products. Nutri-Grain® and Fiber Plus®. We’re expanding our global reach in snacks. thanks largely due to our recent acquisition of Pringles and our introduction of Special K® cracker chips in several global markets.MARKETPLACE Smart Snacking Snacking can play an important part in any healthy diet. including wholesome snacks. which includes Special K®. In addition. has been growing in popularity. The Pringles acquisition gives our company access to a new range of technologies. In fact. including ones that Pringles developed to reduce sodium. without compromising on taste. 2012 Corporate Responsibility Report 27 . Our North American wholesome snacks category. the Pringles acquisition expands our access to global markets. nearly half of our wholesome snacks purchased by consumers in 2011 were not on the market in 2007.

4 Kellogg data on file. Fat.S. 1 2 2012 Corporate Responsibility Report 28 . (2008) Dietary fibre and health: an overview.S. Cycle 2. The data was drawn from label. MexicoENNS 2006. Nutrition.4 The U. Department of Health and Human Services.S.2. Mini-Wheats® and Froot Loops®) that provide a good source of fiber1 (3 grams per labeled serving) and one-half serving of whole grains (8 grams) than any other food company. Canadian Community Health Survey. Based on a Kellogg audit of national breakfast cereals in October 2012. NHANES 2001–2002. Fiber.. website and a syndicated database and includes nationally distributed ready-to-eat cereals from Kellogg’s. Physical Measurements. Quaker and Malt-O-Meal. In the U. 2010. Washington. Digestive Health: p370-1).3 yet very few meet fiber recommendations. 33:186–200. Physical Activity Patterns and Food Choice Motives. British Nutrition Foundation Nutrition Bulletin. Fatty Acids. Government Printing Office. and Amino Acids (Macronutrients).MARKETPLACE Fiber and Whole Grains At Kellogg. Cholesterol. Cleveland L (2005). General Mills. and we are committed to helping consumers increase fiber in their diets through foods they already eat and enjoy. U. Situation nutritionnelle en France en 2006 selon les indicateurs d’objectif et les reperes du Programme national nutrition sante (PNNS). DC: U.S. An “excellent” source is at least 5 grams. December 2010. NHANES 2007-2008 5 Mosfegh A. or 20 percent of the recommended daily value. 7 Encuesta Nacional de Salud y Nutrición (ENSANUT) 2006 Instituto Nacional de Salud Pública. Usual Nutrient Intake from Foods as Compared to Dietary Reference Intakes.2 A diet high in fiber has been proven to benefit overall digestive and heart health. Protein. 9 Étude nationale nutrition santé (ENNS). (CHD p362-3. Goldman J. 6 Statistics Canada. Carbohydrate. Irish Universities Nutrition Alliance (Report date March 2011). or at least 10 percent of the recommended daily value.S. 3 Institute of Medicine: Dietary Reference Intakes for Energy. 7th Edition. Food and Drug Administration (FDA) defines a “good” source of fiber as containing 3 grams or more per labeled serving. 2004. Dietary Guidelines for Americans. 2006. we produce more ready-to-eat cereals (such as Kellogg’s Raisin Bran®. National Academy Press. 11 Report on: Food and Nutrient intakes. 10 Buttriss JL & Stokes CS. 8 Australian National Children’s Nutrition and Physical Activity Survey (2007). What We Eat in America. we understand the important role of fiber in overall health and wellness. Washington DC. Post. Department of Agriculture and U.

And what about whole grains? Whole grains are good for you and. Wheat bran: its composition and benefits to health. Start Simple. (p371). Phillips F. The fact is. and making cereal is not all that different from baking at home. In some markets. Fat. And through our efforts in sustainable agriculture. That’s it. Washington DC. we roll them out and toast them into crunchy flakes. whenever possible. by the federal government’s 2010 Dietary Guidelines for Americans. O’Sullivan. a recommendation that is supported in the U. 2012 Int J Food Sci Nutr. After drying and resting the cooked grits.12 Our company has been helping to educate consumers about the difference between fiber and whole grains for some time. with different fibers providing different benefits. 2012 Corporate Responsibility Report 29 . The pride and agricultural practices of these family-owned farms contribute to the quality of our foods. and Amino Acids (Macronutrients). a product’s label will state its overall fiber content. First. cont. Fatty Acids. Meet some of our U. Fiber. including regularity. K. we are also beginning to more closely work with many of the farmers who nurture our grains from seed to harvest. Protein. sugar and vitamins and minerals. it is important to select foods with whole grains that are also a good source of fiber.S.8(2):90-3. a European perspective. Also. O’Sullivan K. salt. Kellogg Company has helped consumers start the day off right – with cereals created from the goodness of simple grains. Cholesterol. European Gastroenterology & Hepatology Review. Whole grains can vary in their dietary fiber content. we cook corn grits with malt flavor. The Superior Benefits of Wheat Bran Fibre in Digestive Health 2012. Start Right: The Simplicity of Grains For more than a century. with some whole-grain foods containing very little fiber. Carbohydrate.MARKETPLACE Fiber and Whole Grains. Walton J. Institute of Medicine: Dietary Reference Intakes for Energy. corn or other grains. Wheat bran is considered the most effective form of fiber for improving digestive health. 12 Stevenson L. National Academy Press. Each cereal recipe starts with rice. wheat. 63(8): 1001–1013. growers in the video links on our website. We encourage consumers to check the fiber content of their whole-grain food choices to ensure they are getting at least 3 grams of fiber per labeled serving. most ready-to-eat cereals are minimally processed foods.S. 2012. not all fibers are created equal. Take Kellogg’s Corn Flakes® as an example.

S. one of the largest ethnic groups in Canada.22:296-302. JADA.S. In Canada. cereal is also lower in sodium and sugar than many popular breakfast options. (2011). Myriad studies show that kids who eat breakfast get more fiber.S. http://www. Dietary Guidelines for Americans.S. tend to have lower body mass indexes (BMIs) and are less likely to be overweight than those who eat cereal less frequently. sugar in cereals – including kids’ cereals – contributes just 4 percent of daily sugar intake in the U. USDA National Nutrient Database for Standard Reference. NHANES 2003-2006. We have made available a global research compendium that highlights the many advantages of cereal. Crockett SJ. such as meat or cheese. Kellogg data on file. The Relationship of Breakfast Skipping and Type of Breakfast Consumption with Nutrient Intake and Weight Status in Children and Adolescents: The National Health and Nutrition Examination Survey 1999—2006. See the Hunger Relief section of this website for more details. USDA National Nutrient Database for Standard Reference. 6 Kellogg data on file.3. 2010. Government Printing Office. Keast. UK: World Wide Fund for Nature).. (2006). (2006). fat.A. energy. Nutr Rev. calcium. 5 U. Nutrient Data Laboratory Home Page.9 Despite the fact that cereal has been a breakfast table mainstay for more than a century. about the benefits of breakfast cereal. vitamin A. kids 6-17 years old. Earth Interactions. December 2010. Striegel-Moore RH. Brown CJ. vol. Clark CA. and global warming. “Cereal: The Complete Story” offers a wealth of science-based information regarding the role that eating cereal can play in maintaining healthy weight. such as toast or fruit.S.S. G. vitamin C. Albertson AM. Perspectives in Applied Nutrition. & Mugridge. Franko DL.S. PA. 9 Barton BA. Importance of breakfast to cognitive performance and health. O’Neil CE.S. 2007. Dietary Guidelines for Americans. 8 U. (2012) Nutritional quality of breakfast and physical activity independently predict the literacy and numeracy scores of children after adjusting for socioeconomic status.65:268-281.usda. we launched in 2012 our first-ever educational awareness campaign about the benefits of a cereal breakfast. including those who eat kids’ cereals.8 In addition. and Martin. U. Food and Agriculture Organization. zinc and iron compared to kids who skip breakfast. J et al. 7 U. prompted Kellogg and the supermarket chain Woolworths to embark on a month-long “Breakfast Crusade” to remind families about the importance of a nutritious breakfast. Department of Health and Human Services. Pereira MA. vitamin D and potassium. DR. and Blood Institute Growth and Health Study. it uses fewer resources per calorie to produce than other foods. 3 Cho S. 7th Edition. Washington DC: U. and Cho S. Dietrich M. Department of Agriculture and U. 11 See. J Am Coll Nutr. JD. Agricultural Research Service.N.S. for example.4. Affenito SG.12 The research. 2005.ars. A. as well as consumers. 7th Edition. 110:869-878. Nutrient Data Laboratory Home Page. Nicklas TA. 1996. (Surrey. The effect of breakfast on total daily energy intake and body mass intake: results from the Third Na tional Health and Nutrition Examination Survey (NHANES III).1 Adults who eat breakfast also get more of these nutrients.5 Each serving of kids’ favorite Kellogg’s® cereals with milk provides protein and four nutrients that most kids in the U. A custom Chinese-language website includes detailed information on the nutrition benefits of cereal and tips on healthy eating from a registered dietitian.S. providing the nutrients that many of us – especially children – might otherwise miss. Radcliffe. 2 Timlin MT. Mcdiarmid. calcium. Agricultural Research Service. Eshel.6 Plus.J Am Diet Assoc.gov/nutrientdata. 2003. or who consumed nothing at all. doi:10.MARKETPLACE The Benefits of Breakfast Cereal Most people know that breakfast is the most important meal of the day. DC: U. don’t get enough of: fiber. 2009. sodium and sugar when compared to other common breakfast choices. Release 22. In Australia. Livewell: A Balance of Healthy and Sustainable Food Choices. consuming less fat and cholesterol than those who don’t. Lung. there continues to be misconceptions and confusion about its nutrition value. Release 22. 10.105(9):1383-9 10 U. 2010. Department of Agriculture. targeted specifically at Chinese Canadians. Diet. an independent study released in 2012 revealed that children who ate a breakfast of cereal and milk performed better academically than those who consumed other options. The relationship of breakfast and cereal consumption to nutrient intake and body mass index: the National Heart. for example. riboflavin. 12 O’Dea. J. 2009. 2010. Government Printing Office. Deshmukh-Taskar PR. Department of Health and Human Services. NHANES 2003-2006. Breakfast frequency and quality in the etiology of adult obesity and chronic diseases. boosting nutrient intake and providing a breakfast that is lower in calories.3(3):204-212. from University of Sydney Professor Jenny O’Dea.11 We also share information in various regions and markets to inform consumers about the benefits of a cereal breakfast. 4 Matthews R. Eldridge AL. Block G. That’s why we work to educate health care professionals. Health Education Research. Department of Agriculture and U. Livestock’s Long Shadow: Environmental Issues and Options (Rome: FAO). regular cereal eaters.2 And a cereal breakfast ranks among the best choices for the first meal of the day. Thompson D. Washington.10 Cereal is also a good way to feed the world. Department of Agriculture.7 For example.1093/her/cys069 1 2012 Corporate Responsibility Report 30 . December 2010.

Nutrition Facts **USDA National Nutrient Database for Standard Research Source: Kellogg data on file. whereas a glass of orange juice has 21 grams and fruit-flavored yogurt has more than 40 grams. A serving of Kellogg’s® cereals contains 4 to 12 grams of sugar.S. Children 6-11 years old 2012 Corporate Responsibility Report SODIUM FOLATE NIACIN IRON ZINC 31 .MARKETPLACE The Benefits of Breakfast Cereal. INTAKE OF NUTRIENTS AT BREAKFAST (6-11 years old) 40% National Health and Nutrition Examination Survey (NHANES) 2009-2010 % OF DAILY INTAKE 35% 30% 25% 20% DIETARY FIBER 15% 10% 5% 0% VITAMIN B12 RIBOFLAVIN VITAMIN B6 VITAMIN A VITAMIN C THIAMIN What We Eat in America. Breakfast. subjects 6-12 years. NHANES 2001-2006. cont. Sugar per Serving 2-10g 4g Kellogg’s® Rice Krispies® Kellogg’s® Special K® family of products 21g* (8 ounces) 12g orange juice Kellogg’s® Froot Loops® or Kellogg’s® Apple Jacks® 43g* (8 ounces) fruit yogurt *U. NHANES 2009-2010.

MARKETPLACE Meatless Options Our MorningStar Farms®. In 2012. we launched several new products. The majority of our products have at least 25 percent less fat than their meat counterparts. it was the first company to bring frozen vegetarian food into supermarkets. Kellogg acquired Worthington Foods in 1999 and is proud to carry on the tradition of healthy meatless meals. Our products are designed for vegetarians and for individuals who choose to limit the amount of meat they consume. through participation in initiatives such as “Meatless Monday. Gardenburger® and Worthington® brands offer nutritious solutions that inspire people to eat well. 2012 Corporate Responsibility Report 32 . Going meatless once a week.” can help individuals achieve their nutrition goals. Over the decades. including vegetarian hot dogs. In the 1960s. to give consumers even more options for healthy eating. it led the way to new vegetarian products. The Worthington® brand dates back to 1939.

Kellogg’s MyBowl™ offers simple visual cues to help people get the most nutrition from their bowl-based meals. sodium and fiber. Kellogg developed MyBowl™. www. Choose Kellogg’s MyBowl™ In 2011. including breakfast cereals. we reinforced the importance of fiber for children at the 16th International Congress of Dietetics. Department of Agriculture (USDA) introduced MyPlate to help people follow the nutrition recommendations of the 2010 Dietary Guidelines for Americans. These teams also assist in new product development.com. • In Mexico. Kellogg also regularly participates in academic conferences that help inform our efforts. an annual half-day scientific program presented in conjunction with the Dietitians of Canada Annual Conference. we again hosted the Kellogg Nutrition Symposium. or INSK) presented at the XXV Anniversary Symposium of the Mexican Association of Nutrition. D. to provide access to the latest research. provide nutrient and ingredient information for packaging. health professionals. • Also in Australia. this symposium has presented research and practical information from leading Canadian and international experts. • Our Canadian nutrition team also continued to publish quarterly. we participated with other industry leaders in a discussion on sugar. In 2012. among other work. Kellogg has teams of experts – including registered dietitians. Australia. we launched a new global website for health care professionals.kelloggsnutrition. The following are just some of the many programs we supported or sponsored for health care professionals.. the U.MARKETPLACE Nutrition Education Kellogg plays a role in helping consumers make informed food choices for themselves and their families. nutritionists and nutrition science researchers.C. • In Canada. to complement USDA’s MyPlate. support and conduct scientific research. information and tools. regulatory and labeling experts. and food and nutrition scientists – who create resources for consumers. 2012 Corporate Responsibility Report 33 . Since 1999. • At a conference organized by the Society for Nutrition Education and Behavior in Washington. and host continuing education programs and symposia for health care professionals. Our company sponsored a number of presentations and hosted breakfast symposia at this gathering of the world’s leading dietitians. especially among children. We do this through on-pack labeling and website content and by providing additional information – such as fiber tracking tools and helpful fact sheets – for consumer groups and heath care professionals. we remained active partners in a national consumer education campaign (co-sponsored with a nongovernmental organization called The Gut Foundation) on the importance of dietary fiber in promoting regularity. students and policy makers. research-based newsletters for health professionals and others interested in learning more about nutrition. nutrition scientists and others in 2012: • In Sydney. The forum brought together nutrition leaders who provide nutrition guidance and advice for families. members of the Kellogg’s Nutrition and Health Institute (Instituto de Nutrición y Salud.S. discussing with 400 health professionals the relevance of wheat bran to digestive health. an interactive educational tool for meals typically served in a bowl.

MARKETPLACE
Nutrition Education, cont.
• In Brussels, Belgium, we launched the “Breakfast is Best” campaign in April at the first European Breakfast Day. The event brought together key European policy makers, industry representatives, nongovernmental organizations, media and other health supporters to promote the health benefits of breakfast. As part of the campaign, a “Make Time for Breakfast Pledge” was initiated, calling on policy makers to work to encourage regular breakfast eating across Europe. The campaign is a multi-stakeholder group representing teachers, physicians, dietitians, and the European Breakfast Cereal Association, of which Kellogg is an active member. • In South Africa, our Kellogg’s Corn Flakes® nutrition education campaign trained nearly 600 health care professionals with the aim of improving knowledge of healthy eating among patients at primary health care clinics. We also sponsor education programs for consumers, including the following: • In Mexico, the INSK launched an iPhone application to give consumers a tool to make better decisions about their food and health. The app counts calories and provides recommendations for food choices, water consumption and physical activities. In the first days after its November 2012 launch, the app ranked among the Top 50 in Mexico and No. 1 in the health and shape category. • In Canada, the Mission Nutrition® program provides teachers with creative, easy-to-use, curriculum-based resources to teach students from kindergarten to grade 8 about healthy eating, active living and positive self-esteem. It also includes information and activities to help families adopt healthy lifestyle behaviors at home. • In the U.S., our Nutrition team offers several types of support for schools. This includes providing products that meet U.S. Department of Agriculture’s School Meal regulations for nutrition; supporting School Nutrition Professionals with relevant tools, programs and education; and being Patron members of the School Nutrition Association. Our “build a better plate” program teaches schoolchildren about MyPlate, which helps individuals follow nutrition recommendations of the 2010 U.S. Dietary Guidelines. The program has been implemented at more than 800 schools. • In the U.K. in 2012, we brought together a group of external, independent nutrition experts and education specialists to collate and disseminate food and nutrition guidelines for school breakfast clubs. For additional educational efforts, please see the Hunger Relief section.

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MARKETPLACE
Olympic Sponsorship
From great starts come great things. That’s one of the messages we helped to deliver as an official sponsor of the 2012 U.S. Olympic and Paralympic teams. We were proud to partner with U.S. athletes who believe – as we do – that the power of breakfast is crucial to a great start. Team Kellogg’s included Olympic medalists Rebecca Soni (swimming), Kerri Walsh (beach volleyball) and Jordyn Wieber (gymnastics). We teamed up with the United States Olympic Committee (USOC) to create a video series that featured nutrition guidance from USOC dietitian Alicia Kendig and Olympic swimming champion and Team Kellogg’s athlete Summer Sanders. In addition to highlighting the benefits of breakfast, our partnership supports elite U.S. athletes by providing food for fuel and access to the training and support they need to compete.

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MARKETPLACE
Obesity and Weight Management
At Kellogg, we work on a variety of fronts to contribute solutions to the global obesity epidemic – from portioncontrol packages to consumer education to participation in industry groups. From the products we develop, to the nutrition information we provide, to the organizations we support worldwide, we are committed to helping consumers balance the “calorie in/calorie out” equation by helping to educate them about dietary choices and physical activity. In addition, we offer 100-calorie packs of many of our most popular snacks, as well as wholesome snack bars and frozen entrees in portion-controlled sizes. We continue to identify innovative ways to address the concerns of obesity around the world. In addition to reformulating many of our existing products and introducing new items, Kellogg has worked with the World Health Organization (WHO) as well as with numerous countries in which we operate to encourage healthier dietary choices. For example, in 2008 Kellogg was a founding member of the International Food and Beverage Alliance (IFBA), which subsequently made global commitments in support of the WHO’s Global Strategy on Diet, Physical Activity and Health. For more information on our work with IFBA, see the Responsible Product Marketing section of this report. In the U.S., we’re proud to be a member of the Healthy Weight Commitment Foundation (HWCF), a coalition of 200-plus retailers, food and beverage manufacturers and nongovernmental organizations working to reduce rates of obesity (and childhood obesity in particular). Together, HWCF member companies have pledged to remove 1.5 trillion calories from coalition members’ U.S. products by the end of 2015 (using 2008 products as a baseline). Kellogg works to promote an online interactive tool developed by the HWCF’s Together Counts program, which was designed to inspire active and healthy living. We have been showcasing the program on our Kellogg Company websites and through Facebook to encourage families to pledge to exercise and eat one meal together each day. The principle behind the Together Counts program is “energy balance,” or the concept of balancing calories consumed with calories burned. Together Counts utilizes a web-based digital platform that combines the most advanced social networking and social gaming theories, yet is simple and easy to use. Kind of like Facebook with a twist, families can create a “team profile”and log the meals and events they share together. The goal is to help families strike a healthy balance at mealtime, and to have some fun while doing so. Since 2010, Kellogg in France has supported a public/private partnership designed to prevent childhood obesity. Kellogg provides funding to a nonprofit organization that was recently renamed “Vivons en Forme” (or, “Live in Form”), and is helping to promote the initiative across the country through education campaigns. Kellogg Company also participates in research and literature reviews on dietary topics, including obesity. Recently, our nutrition science team and Purdue University published a review article on the benefits of adequate fiber intake among children and the relation to obesity, diabetes and constipation.1

1

Kranz, S. M Brauchla, J.L. Slavin, and K.B. Miller. What Do We Know About Dietary Fiber Intake in Children and Health? The Effects of Fiber Intake on Constipation, Obesity, and Diabetes in Children. Adv. Nutr. 3: 47–53, 2012; doi:10.3945/an.111.001362.

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aims to shift the mix of foods advertised to children under age 12 toward healthier dietary choices. IFBA companies – including Kellogg – strengthened their commitment to responsible marketing by: • Extending the policy to television programs where 35 percent or more of the audience is under 12 years of age. We will adopt CFBAI criteria in the U. Kellogg does not market any products to children under 6 years old. or controlled by. sodium and sugar. For more information. Since Jan. when they exceed our own internal Kellogg standards. And in Australia. with consistent criteria across companies and categories. In 2011. we’re on track to meet our commitment through the Food and Health Dialogue – a joint government/industry public health initiative – to reduce sodium by 15 percent in ready-to-eat cereals that exceed 400 milligrams of sodium per 100 grams of cereal by the end of 2013. and to increase children’s exposure to foods and beverages compatible with a balanced diet and an active. EU Pledge member companies account for more than 80 percent of the food and beverage advertising spending in the EU. we have not advertised to children under age 12 those products that do not meet our Kellogg Global Nutrient Criteria (KGNC). We’l continue to follow our own KGNC standards when they are more stringent than the revised CFBAI’s guidelines. The CFBAI’s pledge.. IFBA’s global policy provides criteria for advertising and marketing communications that are paid for. IFBA’s global marketing policy is designed to reduce the impact on children of the marketing of foods that are high in fats. We also have joined in country-specific pledges around marketing. setting upper per-serving thresholds for calories. The updated pledge takes our work to the next level. contests and promotions. 2013. The EU Pledge also limits communication in primary schools. fats. the EU Pledge targets advertising to children under 12 toward those products that meet specific nutrition criteria based on scientific evidence and both national and international dietary guidelines. Our Worldwide Marketing and Communication Guidelines (WWMCGs) provide a consistent global framework for responsible marketing practices. The WWMCGs also include rules related to privacy protection. We developed these internal standards based on scientific literature. In the U. Together.eu-pledge. The pledge mirrors the commitments made by IFBA members. 31. including our advertising and marketing approach for digital and traditional media. As a founding member.MARKETPLACE Responsible Product Marketing Kellogg is committed to the responsible marketing and communication of our products to help shoppers make informed choices about the foods they enjoy. healthy lifestyle. Like the CFBAI pledge. we will adhere to the revised guidelines from the Better Business Bureau’s Children’s Food and Beverage Advertising Initiative (CFBAI).eu. sugars or salt. We regularly evaluate the guidelines to make sure they remain relevant and appropriate.S. IFBA companies in countries where they market their products. slated to take effect Dec.) • Applying the policy to all marketing communications on company-owned and third-party websites. In late 2012. 2009. Kellogg also participates in the International Food and Beverage Alliance (IFBA) commitments regarding marketing to children under 12 years of age. licensed characters. we joined with our peer companies in the European Union to strengthen a regional pledge that began in 2009.S. in-school activities. visit www. (The previous policy called for restrictions when those under age 12 represented 50 percent of the audience. along with 13 other leading food and beverage companies. 2012 Corporate Responsibility Report 37 . 1. unless requested or agreed to by school administration. a voluntary self-regulatory program. These new criteria will provide more transparent and consistent marketing guidelines across categories and companies. e-commerce and other media. We also recently signed on to Singapore’s Responsible Advertising to Children Pledge.

“Show Your Stripes” featured a website that allowed kids to create their own sports-themed nicknames and profile and view sports-related profiles and photos from their peers. We believe that responsible marketing and advertising can promote healthy messages to families and their children. The goal of the project. Our sponsorship of Disney’s “Magic of Healthy Living” campaign sought to inspire kids to make healthy decisions. cont.” was to examine whether gaming – a favorite pastime among young people – can be used as a motivator to change sedentary behavior and measurably increase physical activity levels.” highlighted the importance of a nutritious breakfast.000. Kellogg ran advertisements on the Disney Channel showcasing Frosted Mini-Wheats® and popular teen actors who reminded kids about the importance of a good breakfast. planned for the spring of 2013. The “Show Your Stripes” campaign reminded kids of the fun of team sports and. The findings pointed to a need to recognize differences between what motivates girls versus boys. Approximately 250 children in 10 communities across Canada participated in a pilot project in the spring of 2012. Kellogg Canada is a founding member and longtime supporter of CCA.000 to more than 11. called “The Living Experience. The CCA will evaluate such issues in greater detail in a second pilot. more than 70 percent of kids in organized sports quit by the time they are 13 because they’re not having fun anymore. The pilot included a research component conducted by two researchers from the University of Toronto’s department of physical education and health. The results of the pilot were encouraging. A built-in timer limited game play to 20 minutes per day. The Living Experience In Canada. logging an increase in daily step counts ranging from 1. Take. Kellogg believes that a sense of enjoyment is a key factor to kids being their best in any sport or game. The children then created an online avatar that used their “banked steps” to travel within a virtual world.S. especially among girls. Kellogg joined with Concerned Children’s Advertisers (CCA) to develop a first-of-its-kind online.MARKETPLACE Responsible Product Marketing. According to the National Alliance for Youth Sports. Sixty-nine percent of girls falling in the lowest step count category moved up at least one category during game play. Participating children were equipped with a digital pedometer that tracked and uploaded their every step. 2012 Corporate Responsibility Report 38 . interactive game that used kids’ daily exercise as the energy source for playing. like the “Magic of Healthy Living. As part of the initiative. for example. two U. 2012 marketing campaigns designed to motivate children to stay fit and strong – one through a Frosted Mini-Wheats® partnership with Disney and the other from the Frosted Flakes® “Show Your Stripes” campaign.

the individual nature of each brings local attention to commitments Kellogg has made on our own and through industry associations such as the International Food and Beverage Alliance.In force 2012 Corporate Responsibility Report 39 .MARKETPLACE Industry Pledges We have committed to national self-regulatory pledges in 50 countries. Though these national pledge programs share many similarities. Pledge Programs Worldwide Canada Belgium Hungary United States Portugal Switzerland Romania Malaysia Mexico Turkey Russia European Union Gulf Cooperation Council Peru Brazil India Thailand Singapore Philippines South Africa Australia New Zealand .

which give consumers specifics on calories. These principles provide that nutrition information be objective. sugars and other nutrients in our foods.or data-based. And. such as ones that are high or higher in fiber or that are heart-healthy options. We also use the front of packages to flag for consumers the benefits of certain products. we do not make comparisons to the number of trees or gallons of fuel saved.S. we were displaying nutrition information on our boxes. environmental claims must be documented and science. 2012 Corporate Responsibility Report 40 . In the U. emphasize the importance of the overall diet. As early as the 1930s. nearly all of our Kellogg-branded ready-to-eat cereals and about 25 percent of our snack bars had Facts Up Front labels. allow consumers to make the dietary decisions that meet their individual nutritional needs.MARKETPLACE Consumer Information and Labeling Our food packaging serves an important role in informing consumers about the product. its nutrition composition and its ingredients. the food industry began rolling out a new frontof-pack nutrition labeling system that we believe will be even more consumer friendly. At the end of 2012. which provide meaningful and understandable nutrition information on overall diet. which is tangible and measurable. – will ultimately replace our GDAs. in 2012. “Facts Up Front” – a joint initiative among food and beverage companies in the U. fact. Kellogg only allows packaging-reduction claims by weight. and encourage physical activity. fiber. as these are difficult to substantiate with validated data. See the Environment section for more information on our packaging reductions and industry commitments. we pioneered front-of-pack Guideline Daily Amounts (GDAs) labeling. For example. Kellogg supports a fact-based approach to nutrition labeling as set out in the principles adopted by the International Food and Beverage Alliance in November 2010. Environmental Labeling We have established guidelines for environmental claims to help ensure that our product communications are not misleading to the public. As with our nutrition claims. The simple and easy-to-understand Facts Up Front are designed to be a companion to the more-detailed nutrition panel located on the side or back of each product package. Fact-based systems. When making these claims.S. fats.and science-based.

Atkinson Consulting. specific regulations and guidance had not been published as of late 2012. we voluntarily recalled certain packages of Mini-Wheats® in the U. Department of Food Science and Technology. with commitments that start at the very top of our organization. Although the law was signed in 2011. We take a proactive approach to food safety and quality. an internationally recognized food safety management system with robust prerequisite programs that ensure we meet a variety of standards. to develop our new Kellogg Food Safety Plan (K-FSP). We also voluntarily participate in the Global Food Safety Initiative (GFSI). David Acheson. and documentation and record control. but unlikely. and Canada due to the possible. released for public comment two proposed rules for implementation of the FSMA. There were no reports of any injuries associated with these products. the U. Martin Philbert. Food and Drug Administration. 2012 Corporate Responsibility Report 41 . Food Safety Programs1 At Kellogg. food safety was one of our four operational priorities. including employee Good Manufacturing Practices. utilities and waste management. presence of flexible metal mesh from a faulty manufacturing part. Inc. integrates all of our food safety programs into one plan. which is founded on the comprehensive Hazard Analysis Critical Control Points (HACCP) food safety system. chemical control. Leavitt Partners. All of our manufacturing plants and our contract manufacturing facilities are GFSI-certified.600-plus products we make. We believe our Kellogg Food Safety Plan now goes above and beyond the industry standard. In 2012. We have comprehensive programs and processes designed to ensure that our products comply with government regulations and our own strict quality and safety standards. * Our 2011 report incorrectly stated the number of supplier audits as the total to date. we draw on the expertise of our Kellogg Food Safety Advisory Board.S. K-FSP. Our biggest food safety efforts in the U.S.S. Larry Keener. in 2012 were tied to the landmark Food Safety Modernization Act (FSMA). we pulled together a cross-functional Kellogg team. customer service and financial excellence.) In preparation for the release of the FSMA requirements. James Atkinson. or FDA. we require GFSI certification (or an equivalent Kellogg internal audit) for all ingredient suppliers. (In early 2013. allergen management. and Stephen Taylor. In addition. The correct number is included above. and in alignment with. University of Nebraska-Lincoln. • Third-party Global Food Safety Initiative certifications • Systems for sourcing • Co-manufacturing plant audits 1 In 2012. comprised of five external subject matter experts who provide advice and counsel on food safety and food defense on an ongoing and as-needed basis. including more than 30 key leaders from quality. along with people safety.MARKETPLACE Product Safety and Quality Our reputation in the marketplace is dependent upon the safety and quality of the 1. traceability. operations and legal. Food Allergy Research and Resource Program. Advisory board members include Dr. among many others. a set of industry standards designed to improve food-safety management systems across the supply chain. University of Michigan School of Public Health. our quality and food safety programs include: • Food protection systems based on Hazard Analysis Critical Control Points (HACCP). International Product Safety Consultants. food safety. The goal was to integrate and upgrade our programs so they would be both ahead of.. In addition. FSMA requirements. which included several months of 2010 data.

It is naturally present in a wide range of products and has been present in the human diet for as long as people have been baking. at many of our facilities to support food safety infrastructure. we conducted 917 supplier audits overall – 134 of them related to packaging – around the world. even though the presence of acrylamide in our cereals is relatively low. Our Global Scientific Affairs and Emerging Technical Issues teams actively monitor scientific research and regulations to ensure we protect our consumers. dried fruits and vegetables. We also conducted audits to verify adherence to our new policies. Acrylamide is not added to food. updating our policies and procedures and conducting training sessions at each plant to raise awareness of the importance of allergen controls. We will continue to proactively work with international regulators on mitigation strategies. 2012 Corporate Responsibility Report 42 .MARKETPLACE Product Safety and Quality. roofs and drains. An example of the type of work the team is involved with is acrylamide. We have a food safety review process for capital expenditures to identify and prioritize the projects that can have the biggest impact on improving food safety. We. roasting. Keeping an Eye on the Future Our Global Scientific Affairs Department was created in 2011 to track emerging food safety and regulatory issues and evaluate their potential significance to our company. with more than 100 participants from industry. Among our other important food safety efforts in 2012. We are measuring food safety performance in two ways: though audits of our manufacturing facilities and through assessments of food safety training programs for employees. our brands and our reputation. The department’s objective is to identify. It is important to note that acrylamide levels found in breakfast cereals are low compared to levels found in other foods. We also co-hosted the Michigan Food Safety Alliance meeting. • Continued to advance sanitation programs at all plants and reinforced our efforts through hands-on workshops and training for employees and contracted sanitation personnel. • Formally tied food safety to the compensation of our senior leaders. • Continued to expand our auditing programs for our ingredient suppliers. • Began auditing our packaging suppliers to ensure that they are using appropriate food safety and quality systems. The focus of our 2012 meeting was around the FSMA and our expectations for our supplier companies. understand and influence evolving food safety and technical regulatory issues to ensure that we are producing safe foods and protecting our brands. microbiology and food science focus on potential issues that may impact our company. academia and regulatory agencies. and dairy products. along with other industry and academic partners. have been working to develop methods that mitigate acrylamide formation in the cooking process. cont. such as nuts and seeds. The department experts in toxicology. we: • Enhanced our operational controls around allergens. and we will collaborate with them and the food industry on the development and implementation of effective reduction efforts. high-risk ingredients. In 2012. including floors. • Continued to invest in significant structural upgrades. particularly those that provide us with microbiologically-sensitive. • Hosted 85 representatives from more than 50 of our suppliers for our fourth-annual Partners in Food Safety Summit. toasting or frying foods.

MARKETPLACE
Industry Participation
We are a member of or an active participant in a number of key industry groups that focus on food safety and quality, including: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Allergen Bureau (Australia) American Frozen Food Institute Anaphylaxis Campaign (U.K.) Association of Food and Drug Officials (U.S.) Australia Food and Grocery Council (Health, Nutrition and Scientific Affairs Committee) Campden BRI (U.K.) Canadian Association of Importers and Exporters (Food Committee) Consumer Goods Council of South Africa Consumer Goods Forum European Cereal Trade Association European Snacks Association Federation of Indian Chambers of Commerce and Industry Food Allergy and Anaphylaxis Network (U.S.) Food Allergy Research and Resource Program (U.S.) Food and Consumer Products Canada Food and Drink Federation (Europe) Global Food Protection Institute/International Food Protection Training Institute Grocery Manufacturers Association (U.S.) Institute of Food Technology International Association for Food Protection International Food and Beverage Alliance International Food Information Council International Life Sciences Institute Joint Institute for Food Safety and Applied Nutrition Leatherhead Food Research (U.K.) Michigan Food Safety Alliance Roundtable on Sustainable Palm Oil Snack, Nut and Crisp Manufacturers Association (U.K.) Toxicology Forum U.K. Association of Cereal Food Manufacturers University of Georgia Center for Food Safety University of Toronto Program in Food Safety, Nutrition and Regulatory Affairs

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MARKETPLACE
Responsible Sourcing
As a responsible business, Kellogg Company takes great care in the sourcing and procurement of our ingredients and materials. We are committed to an ethical and transparent supply chain free of forced labor, including slavery and human trafficking.. We believe it is our duty to raise awareness and educate our internal and external stakeholders on this important issue and to take appropriate steps to verify that slavery and human trafficking do not exist within our operations or within our global supply chain. Our approach around responsible sourcing has been evolving, with an initial focus on “premiums” – the small gifts and prizes that we distribute through mail-in promotions and store giveaways – that has since been expanded into a code for all other global suppliers. Today, we’re continuing to look for ways to improve our procurement procedures through cross-industry collaboration. Our responsible sourcing framework began to take shape in 2005. That’s when we conducted an internal assessment and determined that the manufacturers of premiums were our highest-risk supplier group because of the greater potential for human rights violations in the countries where many of these premiums are produced. So, starting in 2006, we began conducting annual third-party and company audits, both announced and unannounced, for all highrisk premium producers. The Kellogg Premium Social Accountability (KPSA) program we ultimately created provides guidance and code of conduct expectations for all premium suppliers – and for their suppliers and contractors, too. The KPSA principles compel safe and fair treatment of all premium supplier employees and set expectations that suppliers will protect the environment while respecting cultural, ethnic and philosophical differences of individuals within the countries of operation. The principles also require legal compliance to local or country-specific regulations on social accountability, such as minimum wage and age requirements. We work in partnership with our suppliers to encourage further improvement. We share the results of any thirdparty audits and expect a full corrective action plan within 14 days. In 2009, we expanded our responsible sourcing approach to all global suppliers – not just premium suppliers – developing and deploying our global Kellogg Company Supplier Code of Conduct (the “Supplier Code”). The code includes a Responsible Sourcing Framework, which sets expectations for supplier companies around fair labor practices, business integrity, controls, and criteria around environmental, health and safety issues. “We expect suppliers to treat their employees with fairness, respect and dignity and to promote a work environment that is free of harassment, forced labor, corporal punishment or other forms of physical coercion.” - Kellogg Company Supplier Code of Conduct We reserve the right to terminate relationships with any supplier whose business conduct is inconsistent with our Supplier Code. Virtually all of our direct1 suppliers have signed our Supplier Code, which is embedded into new or revised contracts that we sign with each supplier. We have also embedded the Supplier Code into contracts with our key indirect suppliers, focusing on those that are most critical to our business.

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MARKETPLACE
Responsible Sourcing, cont.
In 2012, we continued our engagement with AIM-PROGRESS, a forum for global consumer goods companies that are committed to responsible sourcing, to develop standard supplier code of conduct provisions. Since many of the forum’s member companies use the same suppliers, using common responsible sourcing provisions should reduce the administrative and operational burden on suppliers to comply. As we push for continued improvement, we also are conducting a set of new internal risk assessments to pinpoint those commodities and countries that are at highest risk for violations of working conditions or human rights. We continue to align our work around supplier auditing and will continue to report more on our approach in future Corporate Responsibility Reports.

1

Direct suppliers include our co-manufacturing plants and providers of raw materials, ingredients and packaging materials. All other suppliers are indirect.

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And. we believe that more than 95 percent of our first-tier supply base has been properly credentialed. service-disabled veterans. And. bisexual. When our suppliers succeed. our spending among first-tier suppliers was just $49 million.MARKETPLACE Supplier Diversity Our supplier diversity program in the U. transgendered) community. with an aim of a 10 percent increase year over year. or 6.95 percent of our total spending. people of color. and we continue to improve each year. gay. We learned through this process that some of our smaller suppliers were not properly certified. we hold a supplier diversity breakfast at our headquarters to acknowledge the contributions of diverse suppliers to our company. our supplier diversity program supports more than 200 supplier companies owned by women. Our consumers are very diverse. Each year. providing business opportunities for diverse companies.S. and individuals from the LGBT (lesbian. In 2011. Over the last two years. By comparison. we succeed. We have been increasing our annual diverse supplier spending in recent years. aims to strengthen our communities. we have been taking a hard look at the companies within our database of diverse suppliers to be sure that they are properly certified and that they themselves are using certified diverse suppliers when reporting their second-tier information. we stopped reporting our second-tier supplier diversity numbers because we could not verify the accuracy of the data being provided to us. We aim to have a diverse group of businesses that supply directly to our company (what we call our “first-tier” suppliers). in 1999. disabled individuals. 2012 Corporate Responsibility Report 46 . To understand their needs – and to succeed in the marketplace – it’s important that we reflect that diversity in our supplier base. today. For 2012. Launched more than 20 years ago. As a result. we spent $380 million. we want our suppliers to use diverse companies in their own supply chains (our “second-tier” suppliers). on diverse suppliers – our 14th consecutive year of supplier diversity growth. we have been working with our suppliers to encourage them to obtain the correct certifications. We are working with our first-tier suppliers to drive a more robust supplier diversity process into their own supply base. We now have an automated process to alert our first-tier suppliers when their certifications expire.

diets.” The explanations are many. It took numerous iterations before the team landed on a formula with an optimal blend of protein sources.MARKETPLACE Case Study: Reformulating Special K® Protein Plus Special K® Protein Plus has been part of our Special K® product line since 2006. Protein-rich foods can help bridge the gap between meals and help consumers stay satisfied longer. Sales from each month are consistently higher than they were in the previous year.” says Karl M. this report uses first names and last initials only. “This was one of the most challenging projects I’ve ever worked on. Consumers seemed eager enough to buy it for its protein content.1 part of the Morning Foods innovation team and one of the project leaders.” Karl says.. while there are a variety of protein sources available. high-protein flake.. It is incredibly hard to manufacture a great-tasting. “This product was is all about finding ways to deliver tasty protein to consumers. But the weight-manager-friendly cereal had a challenge. many Americans are looking to protein to help them reach their weight management goals. Health and wellness products are an important part of our portfolio. Although there isn’t a protein deficit in most U. and we expect the upward Special K® Protein Plus sales trend to continue in 2013.” 1 To protect the privacy of our non-executive employees. we kicked off a product reformulation project aimed at improving the cereal’s taste and meeting the needs of a wider range of consumers. We couldn’t be more excited about the results. a registered dietitian with the Special K® product line.S. We saw an opportunity to reformulate the product and open it up to a much greater number of consumers hungry for more protein in their diets. The cereal. For example. Designed for the consumer interested in a higher-protein diet. “A high-protein cereal that no one eats doesn’t do anyone any good. “There’s a reason there aren’t a lot of high-protein cereals on the market. Kellogg launched the new and improved Special K® Protein Plus in July of 2012 to phenomenal results. In the spring of 2011. But once they tasted it. protein-rich flakes that resulted in a chalky texture. says Stacey K. What this project allowed us to do was take an existing item and make it more relevant for today’s consumers. The big reason? Taste. which was initially launched as Special K® Low Carb in 2004 before being renamed in 2006. 2012 Corporate Responsibility Report 47 . did have a small but loyal following. few purchased it again. not all of them work well in a cereal flake and can result in a fragile flake prone to breakage during transportation. the cereal boasted high-fiber.

Our employees around the world are committed to the company and to each other. for the first time. This excellent performance is a testament to the commitment of all our employees. 2012 Corporate Responsibility Report 48 . Brighter Tomorrows 2012 Corporate Responsibility Report WORKPLACE Kellogg Company is made up of great people. Workplace Highlights Employee Engagement Our 2012 Global Opinion Survey revealed that we have made excellent progress in communicating a compelling Vision.Better Days. Kellogg was named by DiversityInc as one of the Top 50 Companies for Diversity. Purpose. more than 100 Kellogg locations globally had a Total Recordable Incident Rate below 1.0. Diversity and Inclusion In 2012. business strategy and employer brand to our employees. form the basis of our corporate culture and help to foster community among our employees. which are lived each day and felt throughout the organization. ! Employee Safety In 2012. Our K Values™. and they work hard to ensure our continued success.

to the Takasaki (Japan) facility’s Procurement and Production teams for their “above and beyond” contributions after the massive earthquake and tsunami in that country in 2011.S.WORKPLACE Workplace Highlights.the highest honor in our company . Talent Management In Latin America and Asia we launched Leadership Essentials. Employee Well-Being We worked hard to more fully engage our U. Kellogg Values Award . 2012 Corporate Responsibility Report 49 .-based sales and distribution employees in our Feeling Gr-r-reatTM health management program. a year-long training program tailored to the manufacturing environment. Labor Standards We remain committed to maintaining high labor standards at all our facilities around the world. cont.K. Case Study: Pulling Together During a Natural Disaster We gave a W.

increase our efforts to engage with manufacturing plant employees and help employees better achieve work/life effectiveness. In addition. • implementing a new development program for plant managers and supervisors.) The results showed that we have been successful in communicating a compelling Vision. who are spread out across the globe. In addition. for example.) 2012 Corporate Responsibility Report 50 . regional internal websites. Also in 2012. In fact. and we need to do more in this area. And. for example: • refreshing our company Vision and Purpose and communicating it to employees. including through our company intranet. among other initiatives. which had been a particular area of focus for us. we want to hear employees’ ideas and concerns. learning and development options need to be more easily accessible. for a 75 percent response rate. the 2012 survey told us that work/life effectiveness remains a challenge. and it has significantly strengthened our efforts to create a cohesive. employees can read. (See the Talent Management page for more on these initiatives. (This response rate is the same as we saw in our 2011 survey and is typical for a company the size of Kellogg. find company policies and procedures. we completed another Global Opinion Survey of employees. ensure all employees feel valued. In the area of manager effectiveness. In the 2011 survey. Now all Kellogg employees with access to computers can stay better informed about our activities in all of our regions. Purpose and strategy. We launched our first truly global intranet– K Connect – in 2012. and • providing employees with work/life effectiveness approaches and solutions. refreshed our business leadership model and are developing a new manager evaluation tool. In light of these opportunities. “town hall” meetings. The system also enables social media-like interactions. and the ability to collaborate more easily across geographies.000 responses to our 2012 survey. senior management developed a plan for improvement that focuses on work/life effectiveness. We wanted to get feedback on a wide range of topics. We received more than 22. In response we implemented several initiatives. the responses revealed significant improvement compared to last year among these employees. We collect feedback from employees in a variety of ways. manager effectiveness and manufacturing excellence. including. and use an enhanced search feature for employee and company information. K Connect replaced several separate. On K Connect. Employee Resource Groups and companywide opinion surveys. as well as assess our progress on several priority areas that arose out of the survey we conducted in 2011. watch and listen to Kellogg news more easily. We also heard that employees desire better relationships with their supervisors – that there are opportunities to improve two-way communication. and provide them with the information they need to do their jobs well.WORKPLACE Employee Engagement At Kellogg. on more than 20 items in this year’s survey. unified team among our employees. we implemented a new Manager as Communicator resource. the option to “like” and “share” specific pages and news items. we were pleased to see improvements in job satisfaction and positive company perceptions among manufacturing employees. we learned that we needed to make clearer connections between employees’ work and the company’s Vision and Purpose.

employees captured candid moments on video. Integrating Pringles Employees On May 31. from sharing Kellogg Company’s culture and values to managing the practical details of setting up payroll.700 Pringles employees joined Kellogg Company. approximately 1. Kellogg created a password-protected website for Pringles employees. That day. when we first announced the acquisition in February 2012. To make sure information was readily available. And. 2012 Corporate Responsibility Report 51 . Our senior leadership team welcomed our new employees through a variety of audio and written messages. as well as “town hall” events at all key Pringles locations. Kellogg leaders also visited Pringles sites around the world to engage face-to-face with Pringles employees. 2012. We celebrated together on May 31 with a spirit of fun and promise. cont. where we regularly posted updates and information guides about our transition activities. our Human Resources and Information Technology teams held in-depth “onboarding” events in all regions. we shared Kellogg’s® and Pringles® products and marked the occasion with banners.WORKPLACE Employee Engagement. Our people have always been our greatest asset. and we collected these clips into a Day One celebration video that commemorates this special day in Kellogg history. Across 72 global Kellogg locations. There was much to be done. and the individuals affected by this acquisition warranted special attention. benefits and technology for each new person. But we began welcoming these employees to Kellogg several months before that. Across all sites. we finalized the purchase of Pringles from Procter & Gamble – the second-largest acquisition in our company’s 108-year history. t-shirts and posters.

for instance.S. The Safety 7 Launched in 2012. our “Safety 7” initiative was developed to continue building a strong safety culture at Kellogg. we launched a new training program in June 2012 to address manual handling issues – i.99 have a target of 20 percent year-over-year improvement. we saw fewer of these types of injuries in Australia in the second half of 2012. for example. One improvement we have been implementing at certain customer locations in the U.1 Beginning in 2012. eliminate the safety risks involved with using ladders or machinery to retrieve the product. for example. More than 7. etc.. health and safety (EHS) management system called Kellogg Cares About People & Planet. For example.. The progress we have made in recent years has been due to a variety of programs and efforts. 1 As mentioned in previous reports. we traditionally worked toward a 15 percent improvement each year in our overall safety metrics. they are key priorities because they align with other critical efforts (such as food safety). people safety was added as a performance measure in our annual bonus plan program for people managers and executives. Our business leaders focus on these priority areas when they visit our manufacturing plants. as well as country and business unit safety committees and a Global Executive Safety Committee. While the Safety 7 in no way represent all of our risks or areas of regulatory requirement. The carts. with an ultimate companywide goal of zero injuries and occupational illnesses. chaired by Kellogg Company President and CEO John Bryant. We have site-level safety committees at every manufacturing location.e. We want all Kellogg employees to work in safe and secure environments and to return home safely each day.WORKPLACE Employee Safety Employee safety has always been a core value at Kellogg. and locations with a TRIR between 2 and 2. Our recent work to strengthen the company’s manufacturing operations. customer service and financial excellence). are an area in which we have experienced incident trends.000 of these carts are now in use. In Australia. warehouse distribution center and office has its own safety improvement goals. which are unique to Kellogg. locations that have a Total Recordable Incident Rate (TRIR) below 1 have a target to stay below 1. each Kellogg manufacturing plant. lifting. included “people safety” as one of four key priorities (along with food safety. and these facilities track and report their performance monthly using our environmental. In 2012 we shifted to a different model. We also delivered EHS training programs throughout the year to further develop capabilities on everything from ladder safety and proper lifting techniques to electrical hazards and vehicle-backing procedures. whereby each location has its own goal. or K-CAPP. bending and reaching. we are developing world-class safety programs. or represent areas of higher risk in our operations. To fulfill this vision. We have worked hard to ensure that our product distribution staff – who often work in our customers’ retail locations – can do their jobs safely. Around the world.99 have a target of 10 percent yearover-year improvement. is storing back stock on rolling carts rather than high shelves. locations with a TRIR between 1 and 1. in order to help us continue to build our culture of safety performance and deliver on our safety goals. We continue to engage employees at all levels in safety discussions through safety committees. 2012 Corporate Responsibility Report 52 . As a result of this program and other initiatives. as determined by its past performance.

it was down 45 percent compared to 2008. our Zanesville plant in Ohio had gone 2.302 days since their last lost-time safety incident and 714 days since their last recordable incident. As of year-end 2012. Our Lost Time Incident Rate decreased 23 percent in 2012 compared to 2011. These types of celebrations help to build teamwork and ensure that employees stay motivated about safety. it was down 44 percent compared to 2008.000 hours)/total labor hours worked. 2 2012 Corporate Responsibility Report 53 . Lost Time Incident Rate = (the total number of incidents that resulted in days away from work x 200. had gone 1.000 hours represents the equivalent of 100 employees working 40 hours per week. as of year-end 2012.e. We are very proud of this accomplishment. And. many of our facilities have maintained this kind of performance for a long time. for example. 50 weeks per year. 1 Total Recordable Incident Rate = (the total number of recordable cases x 200.. and provides the standard base for the incidence rates.0 in 2012. more than 6 years) without a lost-time incident. it is a tribute to the leadership and commitment of all of our employees. the 200. Similarly. The Charlotte facility has also perfected the art of celebrating their safety successes. our Total Recordable Incident Rate (TRIR) decreased 19 percent in 2012 compared to 2011. for example.000 hours)/total labor hours worked. our Charlotte bakery in North Carolina. Companywide. In addition. more than 100 Kellogg locations globally (manufacturing sites as well as sales and administrative office locations) had a TRIR under 1. In this formula and the one below for Lost Time Incident Rate.266 days (i. they lead “safety marches” through the plant and host employee appreciation events to mark safety milestones.WORKPLACE Employee Safety Performance We achieved significant safety progress in 2012 – progress that reflects the enthusiasm and hard work of our team members at Kellogg locations around the globe.

2012 Corporate Responsibility Report 54 .WORKPLACE Employee Safety Performance. cont.

all people managers have individual performance development plan objectives relating to diversity. we need a workforce that mirrors the diversity of our consumers. 2012 Corporate Responsibility Report 55 . development and mentoring programs in place so that candidates of all backgrounds are prepared for future career progression.S. our seven Employee Resource Groups (ERGs) offer one way for employees to engage with each other and with Kellogg. To foster diversity at the highest levels of our company. In addition. called Women of Kellogg. As an outcome of this succession planning. In the U. is looking to expand engagement with their Kellogg colleagues in Canada. This process includes a review of diversity metrics. We see both diversity and inclusion as key drivers of business success. our ERG for female employees. We hold our leaders accountable for diversity and inclusion performance and provide good visibility into their progress by including diversity and inclusion in their annual performance evaluations.S. In 2013. We also have 13 permanent Diversity and Inclusion (D&I) Councils – 12 in the U. we hold a worldwide talent review across our organization each year. and we are working to accelerate our progress toward a more diverse and inclusive workforce.. We also want a corporate culture in which all employees feel included and valued at work and inspired to do their best.WORKPLACE Diversity and Inclusion To ensure our success in the marketplace. and one in Canada – which work to foster D&I in particular functional areas of the company. 57). it is essential that we understand our consumers – who they are and what they like and value. The ERG for veterans – K Vets & Supporters – was launched in 2012 to honor military service and strengthen the company’s ability to effectively recruit and “onboard” veterans (see p. we make sure we have the right training. To do that well.

Human Resources.com. political and economic well-being of Asian Pacific Americans • Parents.kelloggdiversityandinclusion. – to develop recommendations for how to better engage with Latinos in our workplace and in the marketplace. This group brings together individuals from an array of functions – Marketing. Sales. the largest Hispanic civil rights and advocacy organization in the United States • National Urban League. including the following: • Casa Central.000 to the National Association for the Advancement of Colored People (NAACP) for the tenth Kellogg’s NAACP Law Fellows Program. a social services agency focused on improving the lives of Latinos in the Midwest • National Council of La Raza. gay. education and advocacy • Wounded Warrior Project. through support. a nonprofit group promoting the health and well-being of lesbian.000 in grants to a number of nonprofit organizations that promote diversity and inclusion. Kellogg’s Corporate Citizenship Fund provided $100. cont. Going forward. For more information on Kellogg Company’s diversity efforts. called Features. see our diversity and inclusion report. a nonprofit providing programs and services to injured service members as they transition to civilian life In addition. a national group dedicated to advancing the social. Also in 2012. a civil rights organization dedicated to elevating the standard of living in historically underserved urban communities • Organization of Chinese Americans. at www.WORKPLACE Diversity and Inclusion. 2012 Corporate Responsibility Report 56 . we hope to set up similar Engagement Councils for other demographic groups of growing influence. bisexual and transgender persons and their families and friends. we gave $75. etc. In 2012 we formed a new Latino Engagement Council (separate from our Latino ERG). Families and Friends of Lesbians and Gays (PFLAG). Supplier Diversity.

. was deployed to Afghanistan. as we have a long-standing tradition of valuing and supporting military veterans. Trevor nominated his supervisor and Kellogg Company to receive a Patriot Award. Like all ERGs. K Vets & Supporters was founded by two employees who know firsthand the many positive qualities and useful skills that military veterans can bring to a civilian employer.S. a Marine Reservist from Battle Creek. who works in our International Snacks function. Navy from 1985 to 1991 and then was a reservist until 2006. Because of the support provided by Kellogg before. “Veterans have great planning and organizational skills. 1 To protect the privacy of our non-executive employees. this support was manifested in the establishment of the K Vets & Supporters ERG. Michigan. this report uses first names and last initials only.S. Our Commitment to Veterans In 2011 and early 2012. K Vets & Supporters is open to all Kellogg employees. cont. The award was bestowed by the Employer Support of the Guard and Reserve (ESGR). an agency of the U. We were honored to receive this recognition. leaving his wife.1. family and job at Kellogg’s Battle Creek plant behind. Department of Defense.S. good communication skills. Most recently. and the ability to stay calm under pressure.S. 2012 Corporate Responsibility Report 57 .S. during and after his tour of duty.WORKPLACE Diversity and Inclusion. Greg M. who works in Sales at Kellogg. graduated from West Point Military Academy in 1994 and served in the U. though it primarily seeks to honor and support the almost 800 current U. the ability to properly define goals and motivate others to achieve those goals. he returned home safely to a new baby and to Kellogg Company teammates eagerly awaiting his arrival. Greg added: “Veterans also have great discipline. which recognizes individuals and organizations that provide extraordinary support and cooperation to citizens who serve in the military. Army until 2000. the plan is to expand it globally to celebrate and recognize Kellogg employees who have served in the military in their own regions.. employees who have self-identified as service veterans. such as our donations to the Wounded Warrior Project and our purchase of goods and services from companies owned by disabled veterans. Trevor H.. While the ERG currently operates only in the U. served in the U. This new ERG complements our other efforts to support veterans.” He said he hoped the K Vets & Supporters ERG would increase employees’ understanding of the military and help dispel stereotypes about veterans being rigid or strict. Jason S. a commitment to diversity and inclusion and a desire to win. at a ceremony in August 2012. After his assignment.” said Jason.

and we have been honored by numerous outside organizations.” DiversityInc noted our inclusion of diversity among our leaders’ bonus plan metrics.WORKPLACE Diversity Recognitions and Data We’re proud of our efforts to create a diverse and inclusive corporate culture. In bestowing Kellogg with the special award “Top Companies for Diversity – Management Progress. our active Employee Resource Groups and our strong supplier diversity program. DiversityInc 2012 Top 50 Companies for Diversity and Top Companies for Diversity – Management Progress Hispanic Business Best Diversity Practices Human Rights Campaign Corporate Equality Index 100% Score Employer Support of the Guard and Reserve Patriot Award Black Enterprise 40 Best Companies for Diversity 2012 Corporate Responsibility Report 58 . among other accomplishments.

2012 Corporate Responsibility Report 59 . cont.WORKPLACE Diversity Recognitions and Data.

WORKPLACE Labor Standards We respect the laws of the locations in which we operate. corporal punishment or other forms of physical coercion. we continue to maintain high labor standards at all our facilities around the world and to uphold and protect the basic human rights of our workers. Collective Bargaining About 25 percent of Kellogg Company’s North American workforce is represented by unions. We do not tolerate child labor or forced labor. discrimination. For more on this topic. respect and dignity and to promote a work environment that is free of harassment. as well as our corporate website. During 2012. 2012 Corporate Responsibility Report 60 .000 workers. forced labor. see the Responsible Sourcing page of this report. We also occasionally contract for external audits (in areas such as the administration of benefits and payroll) to confirm our compliance. We carry our commitment to high labor standards through to our suppliers through our global Supplier Code of Conduct. This Code requires suppliers to treat their employees with fairness. we negotiated 26 collective bargaining agreements covering approximately 3. And. We regularly audit our manufacturing and distribution facilities to ensure compliance with government regulations and Kellogg policies relating to employment practices. child labor. and we have not identified any Kellogg-owned operations at which there is a risk for these types of problems.

and introduced a new global assessment tool for external candidates. Also in 2012. We also refreshed all interview training and selection guides for hiring managers. GLIC members discussed our business strategy. including reducing the time and cost needed to hire new employees and better consistency in our recruiting and sourcing strategies.WORKPLACE Talent Management All companies face the challenge of matching the right person to the right job and then developing the talents and capabilities of those employees so they can simultaneously grow in their careers and help grow the business. we also launched Great Start. In 2012. we are pleased to have increased the percent of positions filled by internal Kellogg employees. in the U. direct sourcing and recruiting analytics. build capabilities and drive greater alignment around goals and priorities companywide. As planned. The new approach is also achieving high satisfaction ratings from managers about the quality of hires and service levels. among other topics. We have implemented a consistent recruiting and onboarding approach that leverages advancements in applicant tracking technology. showing that we truly value Kellogg experience and are promoting a “grow from within” culture. Finally. As part of this project. we continued to build a cohesive leadership team through our Global Learning & Insights Community (GLIC). our new global onboarding program. in tandem with the rebranding of all recruitment materials and recruiting-focused social media sites. Kellogg embarked on a project to transform our global recruiting capability – to improve the way we attract. GLIC members gather each year to discuss and align on key issues that will help Kellogg to achieve its Vision of enriching and delighting the world through foods and brands that matter.S. Great Start incorporates all that is necessary for an employee to get off to a strong start at Kellogg. gain insights. the rebranded careers website has seen a 122 percent increase in visitors. professional roles is now managed by a dedicated Kellogg Recruiting team. In 2012. By the end of 2013. in 2012. cutting-edge innovation and consumer dynamics. We are already experiencing benefits from these enhancements. such that all hiring for salaried. we also took the opportunity to enhance our global employer brand – allowing us to better showcase Kellogg as an employer of choice both internally and externally. this coalition of 150 senior leaders from across Kellogg seeks to strengthen our ability to share knowledge. recruiting was moved back in-house. all of our global regions will have implemented these significant recruitment changes. select and onboard talent across all Kellogg locations. To accompany the live experience all employees receive. simplified the online application for internal applicants. emerging markets. Established in 2011. 2012 Corporate Responsibility Report 61 . A key component of this was the launch of the new Kellogg Careers website. we are also unveiling an online global onboarding portal that will allow employees to access the information they need to begin their career journey at Kellogg. social media. including everything from our history to our brands to our Talent Management practices – all delivered by our own leaders. And. In addition.

2012 Corporate Responsibility Report 62 . The Manager as Communicator site features a mix of information.WORKPLACE Talent Management. more confident communicators. and will engage them more directly in the success of the company. tailored to the plant environment. leadership and employee development skills. And. called K Power to Grow. resources and easy-to-use tools that managers can put to use every day in communicating with their teams. we unveiled a new success model for Kellogg employees. a special online portal designed to help busy Kellogg people managers become stronger. we introduced a Supervisor Success program in 2011 in our manufacturing plants. More than 75 percent of all U.-based Kellogg plant managers and supervisors completed this program in 2011 and 2012. we developed and implemented Manager as Communicator. Leadership Essentials will enable plant managers and supervisors to continue to broaden their skills. Our new work/life tools. in response to our 2012 Global Opinion Survey results we developed tools to help our employees balance their work and life.S. In 2012. cont. Finally. The site is updated regularly. we renamed the program Leadership Essentials and rolled it out in Latin America and Asia. As this is being rolled out on a phased basis beginning in 2013. Also in response to the Global Opinion Survey. The program covers an array of management. we’ll provide more information in our 2013 report. This model outlines the behaviors necessary to achieve our Vision and bring our strategy to life. web portal and employee and manager resource center launched in January 2013 and will provide valuable information and resources to our employees. As reported last year.

our Feeling Gr-r-reat™ health management program focuses on prevention. We encourage our employees to bring that heritage to life every day by balancing the “calories in/calories out” equation. but because it benefits us as a business.WORKPLACE Employee Well-Being Kellogg was founded on a strong belief in the importance of nutrition and exercise in promoting well-being. wellness-related “lunch and learns” and a sponsored Weight Watchers® program.S. our Feeling Gr-r-reat team sponsored National Kellogg Wellness Day.. made up of more than 100 employees who are passionate about health and wellness.S. personal fitness assessments. In Canada. At our headquarters in Battle Creek. and participate in health challenges and weight-loss programs. among other things.S. for example.S. In Australia. fitness and wellness.S. our employees participate in a unique initiative called “R U OK? Day.S..S. we held a group walk and set up a fruit and water snack break for employees. we put an intense focus on getting our sales and distribution employees – who work all over the country – more engaged in our Feeling Gr-r-reat program. which is the highest annual participation since the program’s introduction. employees.  This year in the U. employees participated in our onsite health screenings in 2012. for instance. In the U. celebrated this day in different ways. A similar service is available to our U. 2012 Corporate Responsibility Report 63 . The health and wellness of employees is important to Kellogg not only because it benefits our employees as individuals. For the first time. voluntary and confidential counseling service for employees facing personal challenges. health and wellness initiatives include the Creekbank K Club. almost 11. These employees are helping to spread the word and encourage their peers to take part in Kellogg Company’s Feeling Gr-r-reat programs. Overall. We have also set up a Feeling Gr-r-reat Ambassadors Network. Through this program. Michigan. locations. Kellogg Australia also offers an Employee Assistance Program – a free. and over a century later. the London Health Centre and an employee gym membership reimbursement policy. we offered onsite biometric health screenings to our distribution employees in 20 U. The initiatives offered to Canadian employees include fitness classes and challenges. active lifestyle can help to curb rising health care expenses. that belief remains at the heart of our business. Our wellness and benefit program offerings vary by country. employees can get flu shots. nutrition campaigns.” This national program is aimed at inspiring people to regularly ask each other how they are doing and to provide support and encouragement when needed. undergo health screenings and health risk assessments. A healthy. In September. flu shots. for instance. our U. health screenings.500 U. and Kellogg offices around the U. so that we can meet employee needs in each location while complementing (but not duplicating) services and coverage offered by government-run programs.

Olympic and Paralympic Teams.S. 2012 Corporate Responsibility Report 64 . cont. Encouraging Strong Starts As an extension of Kellogg Company’s sponsorship of the U.S.WORKPLACE Employee Well-Being. Kellogg employees in the U. were invited to submit an essay describing their or a family member’s athletic potential and how a strong start to the day – including good nutrition – is important to pursuing that potential. Winners received a prize and internal recognition.

Kellogg Values Award to the Takasaki facility’s Procurement and Production teams. (Production Control Manager). the Production team tackled the task of adjusting and recalibrating the packing machines so that they would work properly with the new (and slightly different) liners.” said Masumi S.and air-supply pipes and cracks in the ceiling and walls. Japan. Kellogg Company gave a W. the award recognizes employees who consistently model our K Values™ while making significant contributions to our business results. First. The Kellogg plant’s Procurement team acted quickly and found an alternative supplier in Korea. It was soon determined that the plant did not sustain any severe structural damage. Hidetaka O. and then worked tenaciously to arrange an airlift of the new liners. The W. Kellogg Company’s supply chain director for the region. and all necessary fixes were completed in less than a week. who needed food. our employees in Takasaki. Mineo I. especially shelf-stable products such as cereal.1 “They also really showed a passion for ensuring that the business carried on successfully..K. Kellogg Values Award is our company’s highest honor. (Purchasing Manager)1 In 2012. our facility there sustained some earthquake damage. “All of the Takasaki employees demonstrated enormous respect and care for one another – and for the business – during this period of adversity. (Production Manager). (ER & Admin Manager). The quake occurred on a Friday. Named for our founder. 1 To protect the privacy of our non-executive employees. it required a tremendous amount of teamwork and hard work to get the plant operational. Then. Hitoshi I.WORKPLACE Case Study: Pulling Together During a Natural Disaster After the catastrophic earthquake (and subsequent tsunami and nuclear reactor meltdowns) that devastated Japan in March 2011. compromised water. the plant’s inventory of cereal box liners typically came from supplier companies in eastern Japan – companies that were wiped out by the earthquake and tsunami.” Takasaki is an inland city in the Gunma Province of central Japan. While our plant’s problems were minor compared to what some in the country were facing. which was no small matter. they were not insignificant. among other problems. had to address the earthquake’s impact on our manufacturing facility there.000 in food and funds to humanitarian organizations operating in the hardest-hit areas. this report uses first names and last initials only. and by Saturday – a day when the plant was typically closed – numerous employees and contractors were onsite to survey the facility and begin repairs.K. Despite being more than 300 miles from the epicenter. But several additional challenges quickly arose. At the same time. for their “above and beyond” contributions during this crisis. 2012 Corporate Responsibility Report 65 . including broken windows. Kellogg Company responded in the best way we knew how – by donating a total of $500. Getting the plant back up and running was not just important to our business – it was critical for the people of Japan. In fact. Left to right: Hisashi S.

to discuss in real time how to allocate materials. The radiation levels of all incoming materials and ingredients were carefully tested.K. In the face of these difficult circumstances. “They said. no safety incidents were reported during this period. quick actions in finding solutions. the Japanese government had to ration power. Production schedule meetings were held every day.. Due to the Fukushima power plant shutdown. the plant’s production manager. labor and electricity to best advantage. the Takasaki team performed admirably. as it meant altering production schedules from regular shifts five days a week to shorter (but more numerous) shifts seven days a week. and passion for the business made them great role models – and highly deserving of the W. ‘We will do whatever we have to do.” 2012 Corporate Responsibility Report 66 . and the atmosphere in the plant was also continuously tested. production levels were restored to normal within just one month. which for the Kellogg facility in Takasaki meant going four hours without electricity each day (in two separate two-hour stints).” The third and final challenge involved protecting against possible radiation in incoming ingredients and packaging materials due to the reactor meltdowns. “They truly inspired us.” said Hidetaka O.. cont.” said Masumi. Ultimately. “The plant employees’ positive. This affected all of the plant’s employees. No radiation was discovered. with no loss of quality in the finished product. “The Production employees accepted these new arrangements without complaint. can-do spirit. Kellogg Values Award. no matter the situation. And.WORKPLACE Case Study: Pulling Together During a Natural Disaster.’ It was amazing. The second challenge was the availability of electricity.

plant reduced its water use by 26% in 2012. Environmental Protection Agency’s Energy Star certification. our European business completed a social and environmental sustainability assessment for our entire value chain.Better Days. U.S.S.K. 2012 Corporate Responsibility Report 67 . Water Use Our Manchester. bakeries once again earned the U.. to better understand risks and set priorities. Brighter Tomorrows 2012 Corporate Responsibility Report ENVIRONMENT It is widely agreed that humankind is using the Earth’s natural resources faster than they can regenerate. in part by installing a reverse-osmosis system that enables treated “gray water” to be used for cooling. This section describes Kellogg Company’s efforts to minimize our environmental footprint and develop more sustainable solutions. Energy Use and GHG Emissions Seven of our U. and that everyone – including companies in every industry as well as consumers worldwide – needs to play a part in building a more environmentally sustainable society. Environment Highlights Environmental Management In 2012.

water and waste efficiency. Employee Initiatives GoGreen team members at our Querétaro. including rice growers in Spain and corn farmers in Argentina.ENVIRONMENT Environment Highlights. Waste Seven Kellogg plants around the world maintained their zero-waste-to-landfill status. among others. Sustainable Packaging Among our 2012 packaging innovations in the U. Mexico. was a stand-up cereal bag (without any external box) made from 15% post-consumer recycled polyethylene.S. facility held an electronics recycling drive that collected 742 kgs of material. cont. the team also organized employee discussions about energy. Sustainable Agriculture We have been working more closely with our agricultural suppliers. 2012 Corporate Responsibility Report 68 .

we do not purchase soy products from tropical deforested regions. has reduced its energy use (per metric tonne of food produced) by 23% since 2005. For example. Instead. Our Environmental Goals and Commitments In our manufacturing operations. we support this commitment. Our commitments regarding the sourcing of palm oil and packaging material also grew out of the CGF deforestation pledge..ENVIRONMENT Environment Highlights. we are working to: • reduce our energy use.S. We have also joined with other consumer goods companies to help stop deforestation.S. we purchase soy almost exclusively from the U. Georgia.5 percent from 2005 to 2009). Kellogg Company’s six frozen foods manufacturing plants. Ammonia is a natural refrigerant and is not a greenhouse gas. all of which are in the U. CGF members also pledged in 2010 to take action to phase out certain refrigerants that are potent greenhouse gases. Case Study: Rome Georgia Plant Our plant in Rome. 2012 Corporate Responsibility Report 69 . greenhouse gas emissions and water use (per metric tonne of food produced) by 15-20 percent from 2005 to 2015. and • decrease waste sent to landfill (per metric tonne of food produced) by 20 percent from 2009 to 2015 (after already reducing this metric by 41. with some supply for our Latin American operations sourced from Argentina. As a member of the CGF. cont. use ammonia in their large-scale refrigeration systems.. The Consumer Goods Forum (CGF) pledged in late 2010 to mobilize its collective resources to help achieve zero net deforestation by 2020.

We have set companywide goals to help drive reductions in our direct environmental impacts. See the Environment landing page for details on our goals and commitments. manufacturing facilities and transportation. from an environmental and social perspective. The criteria are now being piloted in our new-product development processes in Kellogg Europe. on their plant’s performance compared to the targets. packaging materials. such as maple and vanilla. We have directors of sustainability in the U. The plants report monthly on progress. as well as environmental. In 2012. in order to identify key social and environmental priorities for the business going forward.S. We self-reported the problem at that time and have been operating under the correct permits since 2008. with specific reduction goals for each manufacturing plant that align with these overall targets. We assessed water risks. Incorporating Sustainability Criteria In 2012 we conducted a project in Europe to more effectively build environmental and social sustainability into the design of our foods and packaging. we conducted a lifecycle sustainability assessment in 2012 of our entire European business. We have also made public commitments relating to deforestation and refrigerants.-based brands. in part. our Chief Sustainability Officer oversees environmental sustainability. Compliance and Auditing To ensure compliance with environment-related company policies and government regulations. At the executive level. and managers’ performance reviews and bonuses are based. This agreement was related to our discovery in 2007 that we did not have the correct permits for the low levels of emissions that are produced when cooking products that contain certain flavorings. health and safety (EHS) heads in every region and business unit. See the Corporate Responsibility Strategy and Governance section for more on K-CAPP and our internal auditing and compliance procedures. and Europe. ISO-aligned EHS management system called K-CAPP (Kellogg Cares About People & Planet). 2012 Corporate Responsibility Report 70 . Lifecycle Sustainability Assessment Building from work completed in 2011 with one of our U. These leaders support the implementation of our EHS strategy. we finalized an agreement with the U.ENVIRONMENT Environmental Management Commitment to strong environmental performance starts at the top of our company.S.000 compliance penalty and to complete an environmental project at our Battle Creek plant. we use a web-based.” “better” and “best” would look like for a new product. Our Board of Directors’ Social Responsibility & Public Policy Committee oversees the company’s sustainability efforts and climate policy. carbon risks and social risks for all ingredients. We then developed criteria for each aspect that would let us determine what “good. Environmental Protection Agency to pay a $500.S.

Participants discussed and shared successful energy. cont. Institute of Grocery Distribution. our Querétaro and Toluca plants earned Environmental Leadership for Competitiveness recognitions from Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT). Kellogg had worked with several of these individuals on the 2011 project and highly valued their continued contributions. Also in 2012. assess and improve our sustainability practices. Tod Christenson. Advisory board members included Adisa Azapagic. to share. we held a Sustainability Summit in Detroit with representatives from our manufacturing sites in the U. In the second phase we analyzed and prioritized those issues. We expect the plant to complete Stage 3 of the certification in 2013. Ethos Research. along with other methods. Using Natural Resources Efficiently In July 2012. our Bogotá. Phase three. The first phase involved a business-level “hotspot analysis. packaging. Kellogg has been a member of the Mexico chapter of the Global Environmental Management Initiative (GEMI) since 2011. as well as individuals from our Global Engineering and EHS functions. Environmental Recognitions in Latin America In 2012. plant earned an Environmental Business Management Stage 2 certification from the Secretaria Distrital de Ambiente. transportation.and water-reduction practices employed at our sites and identified corporate and vendor resources available to support the execution of plant-specific sustainability plans. involves taking action on the priority issues. which will be ongoing. at which we shared our own successful practices and learned about others in the areas of water use and waste management. facility environmental performance. in acknowledgement of the plants’ environmental improvement projects. both in Mexico City. information about ingredients and suppliers.” during which the advisory board (working with Kellogg staff) identified key social and environmental issues in the Kellogg Europe business value chain. Harish Jeswani. Colombia. This certification indicates that the plant is in compliance with all regulations and that employees have completed an environmental training program. including. for example. In Mexico. GEMI is an organization of leading companies dedicated to fostering sustainability solutions through the sharing of tools and information.S. World Wildlife Fund. Antea Group. Canada and Mexico. David McLaughlin. the national government agency in charge of environmental regulation. BSD Consulting. and we use these forums.. Benchmarking Best Practices Kellogg participates in many sustainability-related industry efforts. Alan Hayes. The advisory board members brought their personal and organizational perspective to the process and provided their advice. Solidaridad. 2012 Corporate Responsibility Report 71 . We enlisted a seven-person external advisory board to help with the effort. and Martin Staeheli. business travel and so on. Kellogg participated in the Industrial Symbiosis Forum and the Green Expo. Stage 3 includes training in environmental management systems and the development of internal auditors for ISO 14000. knowledge and experience. Mexico’s natural resources agency. We shared with these experts a range of information about our business. Through GEMI.ENVIRONMENT Environmental Management. for example. Ethos Research and University of Manchester. We look forward to reporting on these efforts in future reports. Marieka Leegwater.

We use water as an ingredient in our foods. In the face of these serious challenges. cooling and irrigation systems. such as the interruption of global food supplies due to drought or flooding. Even more important. • controlling water use and wastewater discharge to limit potential impacts on the environment. 2012 Corporate Responsibility Report 72 . Kellogg Company is committed to: • understanding and demonstrating compliance with all legal requirements relating to the sourcing. this section addresses our efforts to reduce the use of water in our own operations. in heating. Specifically. our business depends on access to fresh water. and to encourage our suppliers to do the same. This is why we are so mindful of the growing scarcity of global fresh water supplies. we are determined to do our part to reduce our water use and use water more efficiently. and for personal use in bathroom and canteen areas. use and discharge of water. We estimate that agriculture accounts for more than 95 percent of the water used during the lifecycle of our foods. which are under increasing pressure due to the burgeoning global population and the effects of climate change. for cleaning our manufacturing plants.ENVIRONMENT Water Use As a food company. The Sustainable Agriculture page discusses how we’re working to drive water-use sustainability in our supply chain. Changing climate patterns are also expected to cause water-related social problems. our agricultural suppliers are reliant on fresh water to grow the grains and other crops that form the basis of our foods. and • achieving our water-use reduction goals.

These risks could result in. And of course we are working to become more water-efficient in our operations and in our supply chain. technology (e. India. water transport. which is one of the water-stressed regions.wri.cfm?pid=3056 and http://pdf. In the past few years. We used the World Business Council for Sustainable Development (WBCSD) Global Water Tool to map our facility locations. Water availability is developed by dividing global runoff values at the river basin level by the population of each basin.ENVIRONMENT Water-Related Risks and Opportunities In 2010 we assessed our water-related risks to give us insight into where we face issues relating to water availability and quality. In Omaha.pdf. The model takes into account land cover and soil type. And we evaluated several key ingredient supplies and associated water-related business risks. Australia.) 2012 Corporate Responsibility Report 73 . We have developed business contingency plans to address these types of risks. to incorporate three new manufacturing sites – the two Pringles plants we acquired plus a new cereal production facility that will be built outside Chennai. quality. for example. monitor projected trends and evaluate regional conditions. temperature and precipitation) and calibrated with observed discharge data from monitoring stations. 1 Kellogg assesses its operations against a projection of the average annual renewable water supply per person for individual river basins in the year 2025. regulatory pressures. The global runoff database is based on a water balance model driven by climate variables (e.. Botany.org/biodiv/pubs_description. for instance. Nebraska. The results from this assessment have helped us to identify and prioritize water-related business risks.g. Kellogg is also a major user of water. operation and production capacity. Our Water Disclosure submission describes in detail the risks and opportunities we face relating to water and our strategies for addressing them. however. India. Mexico. overlaying our supply source locations against global water stress maps and renewable water supply projections.g. (See http://www. The assessment is updated as we acquire new locations. Among the types of risks identified are physical risks relating to declining water quality.wri.. and regulatory risks relating to mandatory water efficiency and conservation measures. Linares. we identified a number of Kellogg sites located in water-stressed areas. flooding and increased water scarcity. to determine where water availability was at risk in the future. higher prices for water and the need to adapt through changes in plant design. Spain. we have made significant strides in reducing our water use and any potential impact of our operations in that watershed. California. Five of those are in areas of “extreme stress:” Valls. It was updated in 2012. to reduce these types of risks for our business.org/pagemaps/page_freshwater_maps. We also completed site-specific surveys to understand water flow. we have shared the results of our water-risk assessment publicly via the Water Disclosure program of the Carbon Disclosure Project (now known as just CDP). and San Jose. 2012 Water Withdrawl Sources Using the World Resources Institute’s 2025 Water Availability Index1 (one of the indicators in the WBCSD’s Global Water Tool). Sri City. desalination) and deep groundwater sources are not accounted for. Projections are based upon the annual runoff data obtained from the University of New Hampshire and population projections based on national middle-range growth rate estimates from the United Nations’ Population Division. Each year since 2010. cost and water management programs.

which we divested in 2012.ENVIRONMENT Our Water Performance1 During 2012. Our cereal plant in Charmhaven. But it is down 13 percent since our baseline year of 2005. Our Querétaro plant – which is located in an arid region of Mexico – has not discharged any water into the public wastewater treatment system for the past decade. 1 Our water data are for our global manufacturing facilities only. in addition to reducing the potential for worker injuries related to manual handling. They achieved these reductions through a variety of water-saving measures. which are used in the manufacturing process to hold food or food waste. The reverse-osmosis-treated water is used in “gray water” applications in the factory. the facility reduced this water metric by an additional 9 percent in 2012. The data for all years have been adjusted to remove our Navigable Foods business in China. 2012 Corporate Responsibility Report 74 . such as operating one boiler instead of two. we continued to work toward our goal of reducing water use (per metric tonne of food produced) by 15 to 20 percent from 2005 to 2015. for example. which we acquired mid-2012.. the plant reduced its water usage 26 percent in 2012. U. After decreasing water use 16 percent per metric tonne of food produced in 2011. plant case study for another example of how one of our plants has been reducing its water use. installed a reverseosmosis system in 2012. Around the world. They do not include water use at our offices or warehouses. and installing low-flow hand-washing sinks. is located in a temperate climate that is prone to periods of drought. such as in wet scrubbers and cooling operations that are separate from food production. Our plant in Omaha. during which strict water restrictions are enforced. In 2012. Georgia. All wastewater is treated on-site and then reused for irrigation on the facility’s grounds. The automated washer is expected to use 90 percent less water than manual washing. The tubs. the plant installed an automated tub washer. manufacturing plant. Also. As a result of this new system. Our Manchester. We have been working toward more water-efficient processes in this plant in order to minimize the potential impact of these restrictions on our operations. installing reduced-flow spray nozzles for clean-in-place conveyor washing. for example. our water use per metric tonne of food produced increased slightly in 2012. among others.K. so we are on track to meet our 2015 goal. See the Rome. the data do not include the Pringles plants. identifying and repairing failing valves. Australia. our facilities have implemented a range of water-saving initiatives that are helping us to reduce water use and use water more efficiently. were previously washed manually. Nebraska – which we highlighted for their water-reduction success in last year’s report – continued to make strides in 2012. As seen in the lower chart at right.

however. Manufacture the materials (such as cartonboard and plastic films) needed to package our foods. 5. more than half of our products’ lifecycle carbon emissions occur in the raw materials supply chain. Transport our finished foods to market. 7. Most of these uses of energy are outside of our direct control. because the greenhouse gas emissions that result from burning fossil fuels contribute to climate change. 3. Heat water for cleaning our facilities. On average. 6. nuts and other agricultural ingredients that go into our foods. energy is required to: 1.” 2012 Corporate Responsibility Report 75 . That’s part of why we work to encourage sustainable practices in our agricultural supply chain and minimize our use of packaging. and are technically measured in “carbon dioxide equivalents.1 1 Carbon dioxide is the most prevalent of the greenhouse gases associated with the manufacture of our products. and 8. Manufacture agricultural fertilizers and other farm inputs and bring them to market. Run the farm equipment needed to plant. in fact. Transport those packaging materials to our manufacturing facilities. as it is for all food companies. 2. fertilize and harvest the grains. The area over which we have most control is the energy used in our own facilities and transportation fleet. For example. We consider this energy use to be one of our most significant direct environmental impacts. fruits. Run the production lines to make our foods.ENVIRONMENT Energy Use and Greenhouse Gas Emissions Fossil-fuel-derived energy is used throughout our value chain. 4. Transport those ingredients to our manufacturing plants. Our emissions metrics take into account all types of greenhouse gases emitted due to our energy use.

reservoir levels. regulations relating to the next phase of the climate change agreements have come into force. Some of the risks. two of our sites are permitted under the EU Emissions Trading Scheme. We also face regulatory risks and associated costs. which begins in 2013. In the U. In Australia. for example. 2012 Corporate Responsibility Report 76 . but they may also increase our costs. for example. which are a significant component of our overall costs.ENVIRONMENT Climate Change Risks and Opportunities We are mindful of the risks and opportunities we face as a company due to climate change. stricter targets have been set. Although our Australian business is not directly affected by this law. which will also mean strict energy-reduction targets for us. include changes in rainfall patterns. we are starting to experience the impact of pass-through costs from suppliers that are required to purchase carbon permits. the Clean Energy Act took effect in July 2012. which is available online. These types of physical risks may also affect the cost of agricultural supplies. snowpack and average temperatures. Under the next phase of this scheme. which may affect agriculture and stress supplies of fresh water.K. These tougher regulations will give us an opportunity to drive further efficiencies in our plants.K. and we outline them in detail in our submission to the Carbon Disclosure Project (CDP). separate U. which means we will likely have to purchase carbon dioxide allowances each year to make up for our predicted shortfall. Also..

Ohio. North Carolina. As seen in the charts below. our performance on these two metrics was essentially flat in 2012. There’s a certain base load of electricity that’s needed to keep plants operational. mean we are now using more hot water (and thus more energy to heat it) than before.S. Changes in our manufacturing plants’ sanitation practices (see the Food Safety discussion). Cincinnati. for example. Environmental Protection Agency’s Energy Star certification for best-in-class energy performance. offices or warehouses. and they cover Scope 1 and 2 emissions. which we acquired mid-2012.ENVIRONMENT Our Energy and Greenhouse Gas Performance1 We continue to work toward our goal of reducing our global energy use and greenhouse gas (GHG) emissions (per metric tonne of food produced) by 15 to 20 percent from 2005 to 2015. Also. North Carolina. Progress toward these goals has been challenging for several reasons. Kentucky. which means that “energy use per metric tonne of food produced” may rise during periods of lower production. The data for all years have been adjusted to remove our Navigable Foods business in China. Since 2005. Charlotte. Georgia.S. and Louisville. placing them in the top 25 percent of similar facilities nationwide for energy efficiency. we have been using lean manufacturing techniques and analyzing our energy usage carefully to determine where additional reductions and efficiencies can be realized cost-effectively. Florence. bakeries have once again earned the U. our efforts have been hampered by lower production due to the region’s continuing economic struggles. Last year. Also. Kentucky. 2012 Corporate Responsibility Report 77 . They do not include energy or emissions from our transportation fleet. 1 Our greenhouse gas emissions data are calculated using the GHG Protocol Corporate Accounting and Reporting Standard developed by the World Resources Institute and the World Business Council for Sustainable Development. Our Energy-Efficient Bakeries Seven of our U. The Energy Star-certified bakeries include our facilities in Augusta. Columbus.4 percent. putting us slightly behind in our efforts to meet our 2015 energy and GHG goals. our baseline year. Nonetheless. which we divested in 2012. Note that our energy and GHG data are for our global manufacturing facilities only. the data do not include the Pringles plants. Georgia. the EPA awarded these same locations the first-ever Energy Star certifications for bakeries. our energy use and GHG emissions per metric tonne of food produced have each decreased by 7. in Europe. Cary.

as opposed to 8. Our plant in Linares.. Japan.000 kilowatt-hours annually – the equivalent of the energy use of 25 homes in the U. These reductions were accomplished by switching from boilers to energy-efficient water heaters.S. they have an expected lifespan of 60. so we will be installing them at our two other waffle-producing plants in the U. Our plant in Takasaki. Michigan. Mexico.ENVIRONMENT Facility Initiatives In 2012. Health and Safety Training We deliver numerous training programs at our facilities each year on various operational aspects of environment.. Pennsylvania. Several of our locations rely on alternative energy sources for some of their power. we have a small solar installation at our plant in Allyn. It is estimated that these will result in energy savings of 5 gigawatts/year. for example. U. these programs covered topics such as regulatory compliance. The new models are approximately 25 percent more energy efficient than our previous ones. among other projects. Finally. Georgia. the plant decreased its energy use (per metric tonne of food produced) by 6 percent in 2012. New chillers were installed at our Manchester. Beginning in 2012. and we use biogas as a fuel for our boilers at our Lancaster.S. facility. plant case study for a detailed example of how one of our plants has been reducing its energy use.K. see the Rome. plant in August 2012.S. we’re working with vendor partners to replace the drive systems on motors and gear boxes in our plants with new ones that are up to 50 percent more energy efficient. We have started doing changeouts in our bigger manufacturing plants and will continue through all of our U. In 2012. Washington. others focused on improving how we manage our energy usage to ensure we are tapping available efficiency opportunities. our Information Technology department began a companywide rollout of new computers. The rollout will be completed in 2013. were a success. recognizing environmental hazards. for example. Environmental. 2012 Corporate Responsibility Report 78 . uses 125 state-of-the-art solar collectors to heat water that feeds two boilers. which will help us save about 280. many of our facilities looked for ways to use new technologies to reduce energy use and greenhouse gas (GHG) emissions. plant has continued to make strides in reducing its energy use. The new irons. Plus. among other topics.S. All told. which use 10 percent less electricity. undertook a project to replace fluorescent light bulbs in the packing area of the plant with high-efficiency LED lighting. In the U. Our Battle Creek. The LED bulbs use 70 percent less electricity and are more eco-friendly because they do not contain mercury. California. maintenance of equipment. plants in 2012. We also pilot tested new energy-efficient Eggo® waffle irons at one of our U. At our frozen foods plants in Atlanta. In addition. Georgia. and San Jose. we reduced natural gas use significantly in 2012 – by 60 percent in Atlanta and 7 percent in San Jose (per metric tonne of food produced). in part by upgrading its drive systems and also via improved maintenance and more-efficient operation of steam and compressed air systems.S. health and safety management. and why sustainability is important to Kellogg Company’s business.000 hours for fluorescents. plants as resources become available. in 2013.000 hours.

companies are given scores based on efforts to promote fuel efficiency and improve environmental performance. Environmental Protection Agency’s SmartWay program.ENVIRONMENT Transportation Initiatives In the U. The primary driver behind these improvements is the use of “intermodal” shipping – in particular. SmartWay is a partnership among government. and parts of Mexico. has shown dramatic reductions in GHG emissions per outbound case – more than 50 percent reduction since 2005.. Our Kellogg-operated fleet and about 90 percent of our contracted fleet are enrolled in the U.K.S. In 2012. We have reduced these emissions 20 percent since 2006. The U. business and consumers to help reduce fuel use and improve air quality.K. our carbon dioxide (CO2) emissions per case of food delivered stayed about flat.S. Our contracted transport for the U. Kellogg trucks and a contracted fleet move our finished foods to market. We are utilizing the longer trucks on just one key route to date. policies and strategies for their fleets. Reducing transportation-related energy use helps us to both decrease greenhouse gas (GHG) emissions and save on fuel costs. In recent years. so we track these metrics carefully. 2012 Corporate Responsibility Report 79 .S. we have undertaken an array of initiatives to improve the efficiency of fleet operations – from more-efficient routing to improvements in packaging and loading – and we continue to look for these kinds of opportunities. In the SmartWay program. government in 2011 approved a limited trial of these types of trailers. we are part of a pilot project that is testing longer semi-trailers for product delivery. In the U. which can each hold 15 percent more product than a typical semi-truck. which is particularly useful and fuel-efficient for transportation across long distances. the combination of truck and rail shipping. but we estimate that even this single change will mean avoiding the equivalent of 80 metric tonnes of CO2 emissions per year. Scores improve when companies adopt fuelefficiency and emission-control technologies.

01 percent – is sent for energy recovery. sending unwanted materials to landfill only as a last resort. At Kellogg. How We Define Waste For Kellogg.) Waste to landfill is the metric we track most closely and report on. food waste sold for animal feed. for example.” Many companies – and consumers – now do their best to minimize waste and find new uses for discards. waste includes any material leaving our manufacturing plants that is not part of the finished product or its packaging. and any remaining material headed for landfill or incineration. 2012 Corporate Responsibility Report 80 . The remaining 97 percent is recycled or sold to livestock operators to be used for animal feed. (A tiny portion – less than . as it is the one we most want to minimize. This includes. paperboard. metal.ENVIRONMENT Waste In this era of increasingly scarce natural resources. wood or other materials designated for recycling. approximately 3 percent of our overall waste ends up in a landfill. leftover or unwanted materials have come to be seen as valuable assets rather than “waste.

which we divested in 2012. Four Kellogg Europe plants have achieved it thus far – Bremen. Between our original base year of 2005 and 2009. all Kellogg facilities have pledged to achieve zero waste to landfill by 2015. compared to a 2009 baseline. The data for all years have been adjusted to remove our Navigable Foods business in China. we decreased our waste to landfill by 2 percent per metric tonne of food produced. 2012 Corporate Responsibility Report 81 . 1 Our waste data are for our global manufacturing facilities only. and Blue Anchor.6 percent (per metric tonne of food produced) compared to the 2009 baseline. New Jersey. which we acquired mid-2012. Food and Drink Federation. we reduced this waste metric by 41.K. an industry association. Korea.) That means that by the end of 2012. the data do not include the Pringles plants. We’ve made this voluntary commitment together with other members of the U. and the snack plant in Wrexham. England. and we are continuing to work toward that goal companywide. our plants in Anseong. Wales. Valls. In 2012. Spain. Belgium. Elsewhere in the world. due to rounding. also sends zero waste to landfill. Our long-term vision is to send zero waste to landfill. They do not include waste generated at our offices or warehouses. putting us on schedule to meet our goal. Also.ENVIRONMENT Our Waste Performance1 We have a goal to reduce waste to landfill 20 percent by 2015 (per metric tonne of food produced). Manchester. The Pringles plant in Mechelen. Lancaster. In Europe. we had reduced waste sent to landfill by 11.5 percent. which we acquired mid-year. (This isn’t apparent in the bar chart. Germany. also have achieved zero waste to landfill. Pennsylvania.

ENVIRONMENT Waste Reduction Initiatives Our plant in Muncy. we have been a leader in “rescuing” food that would might otherwise be diverted – raw ingredients as well as finished products – and donating it to feed people in need. has made good progress in recent years in reducing the amount of waste it sends to landfill. equipment and supplies. Kellogg ended up donating – rather than landfilling – about a half ton of material. Recycling containers in packaging areas for stretch film and plastic Kellogg is also very committed to helping reduce food waste. And. as this kind of waste has social. environmental and economic impacts. stretch film and plastic packing bands. found themselves with a surplus of office furniture. In the years since. Nearly all of the food waste from our manufacturing plants is sent for use as animal feed. Recipients included the YMCA and City Mission in Pittsburgh. or 82 percent per metric tonne of food produced. Pennsylvania. employees there began to focus on increasing recycling rates and were able to identify a number of recycling opportunities. balers. please see the case study in the Hunger Relief section of this website. the facility has decreased its annual waste sent to landfill by 31 percent. For details on these efforts. When employees at the Kellogg office in Pittsburgh. In 2009. 2012 Corporate Responsibility Report 82 . Pennsylvania. the plant has purchased several pieces of equipment – including compactors. Since 2009. choppers and recycling bins – that enable the collection and diversion of key materials such as plastic bags. After looking at several options. they searched for ways to donate the material rather than send it to landfill.

The virgin material in our corrugated cases is also SFI or FSC certified.. Our corrugated cases (the secondary packaging that protects our products during transit) contain a higher percentage of virgin paper fiber to maintain strength while reducing weight. we developed a sustainable packaging framework that focuses on improving performance in three key areas: the package-to-food ratio. This commitment helps us to fulfill our obligations as a member of the Consumer Goods Forum. We are also a member of the Sustainable Packaging Coalition. distribution and consumption are sustainable. Finally. is recyclable. The first cereal box we produced more than 100 years ago was made using recycled cardboard. The outside of the packaging also provides us with space to communicate product attributes and nutrition information. more than 99 percent is made from certified sustainably grown virgin fiber. In the U. Globally. 84 percent of our food cartons globally were made from recycled fiber content. we are one of 10 organizations that founded AMERIPEN – the American Institute for Packaging and the Environment – in 2010. and we remain committed to the sustainable use of forest products. percent recycled material content and percent materials that are commonly recoverable. we work hard to ensure that our packaging is effective in protecting our foods while minimizing the materials used – in order to both keep product costs down and reduce packaging’s environmental footprint.S. and we participate in Walmart’s Packaging Supplier Scorecard project. And all of it. In 2012. of course. Of the forest-product-based packaging material we use that is not recycled. This material is certified either through the Forest Stewardship Council (FSC) or the Sustainable Forestry Initiative (SFI). 2012 Corporate Responsibility Report 83 . We also work to boost the recycled content of our packaging and increase its recyclability. To help our packaging specialists deliver sustainable solutions. At Kellogg. AMERIPEN works to promote science-based decision-making regarding packaging and advocates for a future in which all production. 48 percent of the corrugated material we use to transport our products is made from recycled content. We track and communicate our progress internally through quarterly reports.ENVIRONMENT Sustainable Packaging Product packaging is essential for protecting our foods in their journey from manufacturing facilities to retailers to consumers’ homes. we are involved with several industry-wide efforts to promote sustainable packaging. for example.

2012 Corporate Responsibility Report 84 . thereby reducing overall fuel consumption. which holds Kashi GOLEAN® Crisp!™ cereal. we recently converted the shipping cases for many of our single-serve snack products from corrugated cases to shrink-wrapped bundles. Our standup bag solution eliminates the need for the box. This reduced packaging weight by 13 percent. The bag. uses 15 percent post-consumer recycled polyethylene. printed bag for a new product called Kellogg’s® Corn Flakes Porridge. because it fit better and was easier to carry home. The success of our Special K® Pastry Crisps presented an opportunity to redesign the packaging for warehouse stores. and we are able to ship 20 percent more product per truckload. where many people travel to and from the grocery store on foot. The traditional box-in-box design was replaced with a high-gloss corrugated carton. uses 80 percent less material than the bag-in-box style. cont. Among our packaging innovations in 2012 was a stand-up cereal bag (without any external box) that reduces packaging materials by more than 80 percent compared to the bag-in-box version. the packing weight was reduced by 30 percent. In an effort to minimize the use of non-value-added packaging. We noticed that consumers who purchased traditional “bag-in-box” cereal would immediately discard the box after purchase and then put the remaining bag in a tote bag or backpack. We developed this packaging in response to observations about consumer behavior in South Africa. we will look for other opportunities to use it in the future. If it performs as well as we expect and is accepted by consumers. results in less waste and ensures that consumers have access to key nutrition information that previously appeared only on the box. As a result.ENVIRONMENT Sustainable Packaging. In South Africa we introduced another innovation– a stand-up. It’s the first time this material has been used in a flexible food package. Recent Packaging Projects Each year our packaging team works on 100-plus projects involving either designing packaging for new products or improving packaging for existing products.

 This is the same material used to make white plastic grocery bags. The collected plastics will then be converted into quality recycled-plastic park benches and play equipment for schools and communities.ENVIRONMENT Sustainable Packaging. so RED Group and its partners are placing dedicated collection bins inside major retailers. we are one of 10 partners working with an organization called RED Group to enable the recovery and recycling of flexible plastics such as cereal box liners. 2012 Corporate Responsibility Report 85 . The label – which conforms to the U. cracker and waffle box liners are made of high-density polyethylene (HDPE) which is coded as #2 flexible plastic.S. cont. Kashi®. Kellogg is undertaking initiatives in two regions to help people recognize liners that are recyclable and encourage them to recycle this material. Kellogg is helping to pioneer the How2Recycle labeling system developed by the Sustainable Packaging Coalition. In Australia. an industry working group.S. Expanding the Recycling of Cereal Box Liners Most of our cereal. These plastics are not accepted through curbside recycling. In the U. Federal Trade Commission’s “Green Guides” regarding labeling and gives specific directions to consumers about what aspects of the packaging (including the liner) can be recycled and how – will appear on certain Kellogg’s®. which launched in 2012. and Nutri-Grain® products in early 2013. Kellogg is helping to fund and sponsor the program. Number 2 plastic is commonly recycled.. but the recycle symbol is not typically printed on plastic bags or liners. The Sustainable Packaging Coalition aims for the label to appear on the majority of consumer product packaging by 2016.

Planting Trees in Latin America GoGreen members in Venezuela and in Mexico (from our Querétaro and Toluca facilities) participated in several reforestation and replanting efforts in local parks and natural areas. shrubs and cacti. sponsored a day of environment-related games and activities for more than 700 children at a local school.” taught kids the importance of conserving energy in their homes. Our GoGreen teams help to build a sustainability culture within Kellogg. All told. water and waste efficiency. The presentation included messages about animal behavior and the importance of saving animals from extinction. facility. to an electronics recycling drive (with 742 kgs of material collected). Mexico Our GoGreen team in Linares. The Querétaro team also sponsored Green Week for the second year in a row. 2012 Corporate Responsibility Report 86 . Furthermore. the children visited with and learned about exotic animals. drawing on the ideas of interested employees and encouraging people to make more sustainable choices outside of work as well. to a group visit of the wildlife rehabilitation facility where Kellogg donates leftover food for the animals. during which children of employees learned about conserving water and energy and the importance of the three Rs – reducing. they are driven from the top down. from pythons to macaws.ENVIRONMENT Employee Initiatives Many of Kellogg Company’s sustainability initiatives have grown out of efforts to achieve our companywide environmental goals. Environmental Education for Kids in Linares. called “From a Gray House to a Green One. Later in the day. often through GoGreen teams. In other words. which exist at Kellogg locations all over the world and conduct activities and initiatives of their own choosing. Going Green at Our Querétaro Facility At our Querétaro. Mexico. Other projects and programs are driven from the bottom up by our employees. about 340 employees and their children planted 970 trees. One game. GoGreen members in 2012 organized everything from employee “chats” and skits about energy. the Toluca employees “adopted” a local natural area called Parque Sierra Morelos and plan to revisit it every year to help with reforestation. reusing and recycling. Mexico.

organized and promoted a “Foam Cup Challenge” to spread the word about the effort. at which all art objects were made from repurposed materials. while other pieces were owned by employees and loaned to Kellogg for the show. collected trash. Recycled Art Show in Battle Creek. Michigan The Battle Creek team also sponsored a Recycled Art Show. Kellogg employees participated in an International Coastal Cleanup day for the second year. The GoGreen team also hosted a “lunch and learn” to discuss recycled artwork and sponsored a meeting with local artists. employees in three of our Canada locations – Belleville. Celebrating Earth Day in Canada Finally.ENVIRONMENT Employee Initiatives. 2012 Corporate Responsibility Report 87 . Some of the artwork was made by Kellogg employees and their family members. Boosting Recycling in Battle Creek. The cleanups were held in public parks and other natural areas near Kellogg facilities. Michigan. Michigan GoGreen team members at our Battle Creek. cont. London and Creekbank – organized litter cleanup days on Earth Day (April 20) 2012. The cups will be remade into other consumer products such as plastic lumber and picture frames.000 cups annually. headquarters organized a partnership with Dart Container to begin recycling foam cups. Employee volunteers and their families. together with other local citizens. The GoGreen team. which has a goal of recycling more than 100. plastics and cigarette butts in an effort to keep the beach clean for the local community and wildlife alike. The effort sought to raise awareness about how items could be reused and upcycled instead of thrown away. The show coincided with America Recycles Week in November. Beach Cleanup in Puerto Rico In Puerto Rico.

we look forward to reporting on those efforts in the future. UK: World Wide Fund for Nature). (2006). 10. corn and rice – as well as on palm oil. (See the Responsible Sourcing section for general information about our efforts to ensure an ethical and transparent supply chain. meat or cheese. in the growing of our agricultural ingredients. (2006). we want to do our part to minimize the impacts of agricultural production and help the agricultural sector be more sustainable. See also the special Sustainable Agriculture section in our 2011 Corporate Responsibility Report. p.1 In recent years. Diet. They are also a good way to feed the world. and Seafood Commodities (Washington. et al. According to a new report. Forest. as they use fewer resources per calorie to produce than.pdf.e. U. (Surrey. and Martin. say.org/downloads/the_2050_critera_report. Livestock’s Long Shadow: Environmental Issues and Options (Rome: FAO). PA. and it’s what our consumers – who are increasingly interested in where and how their food is grown – expect us to do.) 1 World Wildlife Fund. Food and Agriculture Organization. and fortunately. and global warming. agriculture is the single-largest driver of deforestation on Earth. DC: World Wildlife Fund. G.. 2 See.panda. the largest user of water. We are also beginning to look more closely at our cocoa supply chain. Eshel.ENVIRONMENT Sustainable Agriculture We know that our most significant environmental impacts occur in our supply chain.2 As a responsible food company. 2012). As discussed in this section. (2011). Available at http://awsassets. 3 2012 Corporate Responsibility Report 88 ..N. food security – i. vol. Our approach involves working with breeders and growers of these products and in partnership with other organizations. Mcdiarmid. grains have a lower environmental impact than many other foods.3 our sustainable agriculture work focuses primarily on the grains we use most – wheat. the biggest user of chemicals and the most significant source of water pollution. Earth Interactions. It’s the right thing to do. Livewell: A Balance of Healthy and Sustainable Food Choices. energy. for example. The 2050 Criteria: Guide to Responsible Investment in Agricultural. 2. Nearly all of the foods we make at Kellogg are derived from simple grains. the question of how to feed the ever-increasing global population going forward – has also emerged as a critical issue facing the agriculture industry. J.

100 percent of the rice we use and 50 to 60 percent of the corn we use comes from local growers. availability and so forth).S. Simple Grains Most of our foods are derived from the goodness of simple grains. for example. products is grown in the U.. But most of our ingredients are grown and sourced in the same regions as the manufacturing plants where they are made into our popular and delicious foods. watch the video at www.kelloggs. are made with 100 percent Australian-grown grains.. While many factors go into determining where we source our ingredients (including cost. In Colombia. All of the rice and corn we use in our U. cont.com/en_US/simplegrains. To learn more about how some of our most popular cereals are made – and to meet some of the farmers who grow our grains – visit www. All of the wheat for our products made in Europe is grown in Europe. the “localness” of the supply is one important criteria. Where Are Our Ingredients Grown? There’s no question that Kellogg is a global company with a global supply chain. as is the majority of the wheat (a small percentage is grown in Canada).ENVIRONMENT Sustainable Agriculture. quality. 2012 Corporate Responsibility Report 88 . Our foods made in Australia. For a closer look at our work with rice farmers in the U.html .S.com/watch?v=kh4J4oY-xcY.S.youtube.

AIM-PROGRESS We continue to be active in AIM-PROGRESS. Field to Market – which in 2012 became an official 501(c)3 nonprofit – is a diverse group of U. 2012 Corporate Responsibility Report 90 . A Kellogg representative sits on the Platform’s advisory committee and also the technical committee. conservation groups. food and retail companies. In Europe.S. The Alliance for Sustainable Agriculture. In Australia. Kellogg has been a member and funder of Field to Market. Louis Dreyfus Commodities and Kellogg Company. At present. a Kellogg representative co-chairs the water group and sits on the management committee. Sustainable Rice Platform Kellogg co-founded the Sustainable Rice Platform to develop and deploy global standards for sustainable. Sustainable Agriculture Initiative Platform We are active members of the Sustainable Agriculture Initiative Platform in both Europe and Australia. the Platform is focused on assembling a global inventory of sustainable rice growing practices. measuring and promoting the sustainability of food and fiber production. a forum for consumer goods companies seeking to enable and promote responsible sourcing practices and sustainable production. agribusinesses. raise awareness and support the implementation of sustainable agriculture principles and practices broadly. a Kellogg representative has been co-chairing the arable crops group for the past two years. with agreed-upon principles and practices to be developed in 2013.ENVIRONMENT Partnerships We have been encouraging agricultural sustainability beyond our own supply chain through a variety of multi-stakeholder and industry partnerships. Through our membership in AIM-PROGRESS. we network with peer companies and seek alignment on pre-competitive issues relating to the definition and evaluation of best practices in responsible sourcing. the International Rice Research Institute. Field to Market Since 2007. This multi-stakeholder effort is a joint initiative of the United Nations Environment Programme.-based grower organizations. universities and agency partners focused on defining. resource-efficient rice production. This food industry effort aims to share knowledge.

water use. It’s important to look at these measures in this way.   The challenge we have is producing high-yielding corn in a way that protects the environment. nitrogen use. conserves natural resources. We also are seeing wider adoption of watermark soil moisture sensors for irrigation management. Field to Market gives corn growers comparative information on energy use. “As a local Extension Educator for the University of Nebraska-Lincoln Extension.   I have already used information from the Field to Market pilot project in winter educational meetings when teaching about best management practices. cont. We have several farmers in the pilot project conducting some exciting on-farm research for the first time with cover crops to enhance soil health and soil carbon.” Randy Pryor. no-till farming and fine-tuning applications of nitrogen fertilizer and irrigation water can reduce emissions and be neutral or gaining in crop yield. University of Nebraska-Lincoln Extension 2012 Corporate Responsibility Report 91 . soil erosion and greenhouse gas emissions on a per-bushel basis. minimizes greenhouse gas emissions and makes a profit.ENVIRONMENT Partnerships. I appreciated the invitation to be a part of the Field to Market pilot project and the ability to have input with industry partners and farmers. Crop rotation.

depending on the extent of their participation. but for Special K® and other beloved brands as well. We have also been supporting research at the Louisiana State University AgCenter. Silver or Bronze certification. documentation of their practices. Gold. We have also been in discussions with representatives of a national park in the area and a bird conservation group to determine how best to preserve and promote bird habitat. In Louisiana in 2012. support breeding work at universities. seeding rates. Grower participants can earn a Platinum. We are also now taking the next step of providing assistance to growers (in the form of assessment tools.ENVIRONMENT Our Work with Grain Breeders and Growers Over the past few years. Helps and encourages growers to adopt sustainable rice agronomic practices. And we actively support – through 2012 Corporate Responsibility Report 92 . Our work with growers and breeders focuses on rice. and demonstrable improvements in their practices. integrated crop protection management and harvest yield. For example. learn about their current growing practices and work together to drive sustainability improvements. In Thailand and Vietnam. have higher yields or even have more fiber or other nutrients. we have walked the fields with farmers to see firsthand their current farming practices and talked with other organizations active in the rice-growing area. Rice Rice is essential to the diets of much of the world’s population. the Louisiana Rice Mill and the Louisiana State University AgCenter (which will run the program). and Recognizes growers participating in the program. This practical. In the Delta del Ebro region. We use this variety not just for our Rice Krispies® cereals. Kellogg has invested for many years in rice breeding programs and partnerships. corn. Detail on the scope of our efforts is provided below. Specifically. We have also been working closely with rice growers in Spain. voluntary program: • • • • Communicates information on good agronomic practices. and we are starting to work more closely with some of the farmers who nurture our rice from seed to harvest. soil testing methods. for instance. we have been funding and supporting rice breeding research and rice scientist training. are drought tolerant. we launched a Rice Master Grower program together with rice farmers. external advice from agronomists and so forth) to help make their operations more sustainable. ensure a continuous supply of rice for Kellogg products and drive environmental improvements in rice production. irrigation practices. growers are asked to document their tillage practices. Kellogg Company’s grain scientists keep on top of the latest developments in breeding. Understands that rice production must be profitable in order to be sustainable. Our intention is that the Rice Master Grower program will bolster long-term social and economic well-being among farmer communities. we encourage the development of varieties that are more environmentally sustainable. Our efforts to date have focused on identifying key issues – such as water management – and providing funds to pay for expert agronomists who can give the growers advice and assistance. and communicate with researchers at private seed companies to let them know the characteristics of crops we are seeking. we have sought to work more closely with the farmers who grow our grains – to build relationships with them. fertilizer management. We have also continued to work – as we have done for many years – with crop breeders and researchers to promote the breeding of new and improved crop varieties. Kellogg is a large user of medium-grain rice. wheat and other grains.

we are just beginning a process of engagement with wheat growers. In Nebraska. We are also working closely with more than 200 farmers in Argentina who grow our unique corn. Wheat Wheat is one of the most widely cultivated grains for human consumption. We plan to expand this effort in 2013 to include corn farmers in Illinois. These farmers have been inputting data regarding their farming practices (e. Michigan and in Canada. and a special soft white winter wheat in our Frosted Mini-Wheats® cereals. while also improving the sustainability of growers’ agricultural practices. And just as consumers regularly use wheat flour in their home kitchens. See the Partnerships page for information on our work with the Sustainable Rice Platform. in order to achieve the attributes we require. cont.. the quality of the corn grit – its hardness and uniformity – is specific and unique and requires special varieties of corn. we use hard red winter wheat flour in many of our crackers and cookies. fertilizer use.S. We look forward to reporting on the progress of these efforts in our next report. In North America. With the help of a resident agronomist (who is also a faculty member at the National University of Rosario).ENVIRONMENT Our Work with Grain Breeders and Growers. 2012 Corporate Responsibility Report 93 .K. On the breeding side. we are in our fourth year of work with corn farmers. such as Kellogg’s Corn Flakes®. And. irrigation. we are taking steps to ensure the corn crop has the attributes we need. In the U. We are also funding a quality assessment of selected corn materials from the World Corn Germplasm Bank. Corn Corn. etc. we also work with corn growers and millers to help drive improvements in the sustainability of their agronomic practices. For example. We are therefore committed to investing in and supporting corn breeding. we are now beginning to identify and communicate best practices. we have visited with wheat millers and growers in North Dakota. we use wheat in almost all of our products. Department of Agriculture’s Natural Resource Conservation Service.. yields. is an essential grain for much of the world’s population.g. funding and scientist mentorship – the International Rice Research Institute’s initiatives on developing future farming systems that will mitigate the impacts of rice cultivation on the environment. we are continually seeking ways to work with the farmers who grow this grain and the breeders who help to sustain and improve it. the University of Nebraska and the U. or maize as it is known in most parts of the world. Other partners in this work include Bunge (our supplier). which is located at the International Maize and Wheat Improvement Center in Mexico.) into the Fieldprint Calculator. With four years of data. most is used to feed livestock or for industrial applications. For many of our brands. to encourage more sustainable practices by all of the growers. Kellogg Company’s crop scientists are funding research at the University of Illinois that seeks to improve the nutrition profile of corn. But a relatively small percentage of it is grown for human consumption.

The practices touched on everything from soil fertility to crop rotation to the wise use of herbicides and pesticides.ENVIRONMENT Our Work with Grain Breeders and Growers. which is actively researching topics of precompetitive interest to wheat users in that province. Other Grains While wheat. our Kashi business worked with growers and a company called Grain Millers. a unique native grain that’s particularly nutritious. In 2012. A Kellogg representative also serves on the Board of Directors of the Heartland Plant Initiative (HPI). as well as barley. The program has been particularly successful in giving rural women a means to earn income for their families. we have a working relationship with a major wheat breeder in Mexico. Kellogg is one of several funders of Mexico Tierra de Amaranto (MTA). We also support heritage grains. We also continue to support a program in Mexico that helps smallholder farmers learn how to grow amaranth. which is actively speeding the rate of conventional breeding using a newly developed technology. we have been delving into the large library of ancient wheat varieties in the vaults at Kansas State University. we are currently supporting breeding work at Michigan State University that is seeking to improve the disease resistance and pre-harvest sprouting of soft white wheat. And. we are interested in work they are doing to understand the drivers of flavor in red bran versus white bran. oats in many of our bars (such as Nutri-Grain®). and sell the foods they make. Kellogg is a member of the Ontario Cereal Industry Research Council. 2012 Corporate Responsibility Report 94 . In particular. In Canada. which teaches community members how to grow and harvest amaranth. Inc. cont. seeking naturally occurring varieties that have improved drought tolerance or other desirable agronomic properties. See last year’s report for more on this program. We also support wheat breeding at Cornell University and are tapping into their library of heirloom varieties. Through the HPI.. to identify sustainable agriculture practices that could be used more broadly by our grower communities. we use other specialty grains in some of our favorite foods as well. In terms of research. use the plant in cooking and baking. we have relationships with private. such as amaranth grown by small-scale farmers in Mexico. For example. corn and rice are our largest-volume grains. These include the 7 Whole Grains blend in Kashi products.and public-sector wheat breeders around the world and have invested heavily in new innovations in wheat.

regulations and our consumers’ preferences on numerous topics. These include “certified organic. In the U. and GM corn accounts for 97 percent of the commonly available type of food corn grown in the U. including genetically modified (GM) crops.S. in some markets around the world we do not use GM ingredients.. for example. as those crops do not have commercially available GM seeds for selection by U. based on input from our consumers and local availability.S. GM ingredients have the ability to increase the nutrition value of our food while allowing farmers to use fewer pesticides. Genetically Modified Crops We understand consumers have questions and strong preferences about the foods they eat. Our Kashi brand. and we continue to actively monitor the science. in fact. farmers. The wheat and rice used by Kellogg are non-GM.” “GE-free. existing nationwide labeling programs give people the information they need. cont. For consumers who prefer alternatives. 2012 Corporate Responsibility Report 95 .ENVIRONMENT Our Work with Grain Breeders and Growers. Because we predominantly source ingredients in the markets where they are sold. genetically modified crops such as corn and soy have been grown for the past two decades. Leading health organizations worldwide have concluded that GM crops are safe. offers a variety of Non-GMO Project Verified options. Kellogg foods likely include ingredients derived from GM crops in the same proportion that they occur in the local supply chain. We will continue to review information from the scientific and regulatory agencies on this topic. However. based on the results of more than 400 scientific studies. as well as our consumers’ preferences.”and “Non-GMO Project Verified” labeling.S. and used by Kellogg.

soaps and cosmetics. since 2009. for example. (See next page. all of the palm oil we use today is 100 percent sustainably sourced through a combination of GreenPalm certificates. We also require. sustainably grown supply. especially foods. Also. and have purchased palm oil only from other RSPO members. Our purchasing policies relating to palm oil help us to meet this commitment. will be segregated sustainably grown. we continue to help growers fund the transition to sustainably grown palm oil by purchasing GreenPalm certificates to cover 100 percent of our current palm oil use. a multi-stakeholder organization working worldwide to ensure that palm oil production is economically viable. we began using a segregated supply of sustainably grown palm oil in the summer of 2012.ENVIRONMENT Palm Oil Palm oil is used in a broad array of common consumer goods. 2012 Corporate Responsibility Report 96 . Since 2008 Kellogg has taken active steps to source sustainably grown palm oil and to help to end the deforestation associated with palm oil cultivation. as discussed in the Our Commitments section of this report. our vendor partners to commit to reducing their impact on the environment. we continue to explore solutions to this global issue and to encourage our mass balance suppliers to continue to increase their percentage of sustainable palm oil as the available supply increases. By the end of 2013.1 percent of the global supply annually – but as a socially responsible company we are deeply concerned about its environmental impacts. • In other markets where neither a segregated or mass balance supply are sufficient or feasible. Most palm oil is grown and produced in Southeast Asia. With the RSPO and other stakeholders. as we have done since 2010. which combines sustainably grown and conventional palm oil.) We have been members of the RSPO. We use palm oil in some of our cookie doughs. we expect that at least 90 percent of the palm oil we use in Europe in our snacks. through our Supplier Code of Conduct. environmentally appropriate and socially beneficial. and the rapid expansion of palm oil production has been associated with the destruction of tropical forests in that region. 100 percent of the palm oil we use comes from suppliers who are members of the Roundtable on Sustainable Palm Oil (RSPO). We are a very minor user of palm oil – buying about 0. mass balance and segregated. Specifically: • In Europe. We are a member of the Consumer Goods Forum (CGF) and support the CGF’s pledge to help achieve zero net deforestation by 2020. The palm oil we use in Pringles® in Europe is sourced through the mass balance system. except Pringles®. In fact.

as well as Girl Scout cookies made by our subsidiary Little Brownie Bakers. cont.ENVIRONMENT Palm Oil. It works like this: Any time an RSPO-certified manufacturer produces one metric tonne of sustainably grown palm oil. About GreenPalm Certificates GreenPalm is a certificate trading program that serves as the official broker of the RSPO for trade in sustainable palm certificates. Kellogg is supporting the production of that amount of sustainable palm oil. 2012 Corporate Responsibility Report 97 . include the GreenPalm logo on their packaging. In that way the producers receive a financial benefit for growing sustainable palm oil. By buying enough GreenPalm certificates to cover the current equivalent amount of palm oil we use. Kellogg’s Pop-Tarts®. even though in most regions it is not segregated in the marketplace for us to purchase directly. giving them an incentive to grow more (and giving other growers incentive to do the same). Currently. they can sell one certificate through GreenPalm’s trading system.

“We make Rice Krispies Treats®. the Rome plant succeeded in reducing its water use (per metric tonne of food produced) by 69 percent in 2012. the plant used two sizable boilers. Plant leadership also identified – and reduced – other major sources of water use. “All of the water we use for sanitation and cleaning.ENVIRONMENT Case Study: Rome Georgia Plant At Kellogg. getting more and more efficient each time. for instance.1 “And let’s face it. and back in 2006 they sprayed about 10 gallons of water per minute each. 2012 Corporate Responsibility Report 98 . each plant focuses on different aspects of their operations when working to meet their environmental goals. which was installed in 2012. some snacks. Some make cereals.” The plant thus traditionally used a lot of water to clean the conveyor belts. Through these and other measures. But the Rome plant has a lot of them (about 50).” Mike and other Kellogg engineers custom-designed the system to meet the plant’s needs. When facilities managers began taking a hard look at resource use back in 2006. “It’s basically a gigantic on-demand hot-water heater. they’ve reduced this measure by 80 percent. some frozen foods. which is the majority of our water use. Because of their unique nature. Georgia. Like most plants.. Rome plant director. Since 2005. each of our manufacturing plants is unique. they quickly realized that water usage needed to be reduced. known as belt washers. Their designs evolved through several iterations. The most recent upgrade. for instance. the Rome plant’s engineering and facilities manager. Mike hopes they can shut down the remaining boiler entirely.” explained Mike H. among other things. Some are big. the plant was able to decommission the larger boiler. that cleans the conveyor belts with high-pressure streams of water. After completing a re-piping project in 2010. the baseline year. Take our snacks plant in Rome. this report uses first names and last initials only. the Rome facility uses a system of hoses and nozzles. now runs through a high-efficiency water heating system.” said Dave W. Kellogg engineers set to work designing and installing a new belt-washing system. Rice Krispies Treats® are extremely sticky.. uses just 2 to 3 gallons per minute each. In the not-too-distant future. Previously. some are small. And then there are those that have specific challenges due to the products they make. And in 2012 they undertook a project that nearly eliminates the need for the remaining boiler. 1 To protect the privacy of our non-executive employees.

” And that work has paid off. they’ve found a company that recycles those bags. And really.” said Dave. so they don’t go to landfill. when plant leaders took a trip to the landfill to get a better look at what’s in their solid waste. The biggest of these projects occurred in 2010 when the team replaced the facility’s entire HVAC system. “Over the past five or six years. cont. and they learned that about half of it was ingredient bags. as the plant has reduced its energy use (per metric tonne of food produced) by 1 percent in 2012 and 23 percent since 2005.” 2012 Corporate Responsibility Report 99 . Reducing Energy Also a Priority The plant has also made good strides in reducing energy use. through myriad individual efforts. in addition to installing motion detectors and dimmers in areas that are infrequently used. “we’ve tried to implement at least one big energy-efficiency or energy-reduction project each year. Reducing Waste by Increasing Recycling Reducing waste has also been a key focus. In fact. as it recirculates the air inside the plant instead of constantly pulling new air from outside and cooling or heating it to the desired temperature. The new system is much more modern and efficient.ENVIRONMENT Case Study: Rome Georgia Plant. Those efforts began in earnest back in 2007. And in 2012 they upgraded all lighting to the latest high-efficiency fluorescent bulbs. It also better controls condensation and humidity. Since then. whether it drives cost savings or not. each person in my senior leadership team has a passion for doing the right thing for the environment and sustainability.” said Dave. the plant has reduced waste to landfill by 37 percent since 2009 (per metric tonne of product produced). They have also completely revamped the plant’s air compressor system. which is important from a food safety perspective. “but many of the other environmental projects do. “That particular recycling effort doesn’t save us any money.

the Kellogg Foundation is governed by its own independent Board of Trustees. W.K. focusing on hunger relief and programs that support breakfast for children and families.S. his legacy lives on. More than a century later. Our founder. Kellogg in 1930. We also have been focused on community development as well as programs that support diversity. Kellogg Foundation is a separate entity and makes its own social investments. The Hunger Relief section of this website spotlights our food contributions and breakfast programs. we have a long history of investing in our communities.K. was not just a great entrepreneur. Kellogg. Community Highlights Strategic Philanthropy We launched our new “Breakfasts for Better DaysTM” strategic platform.Better Days. Brand Philanthropy We donated 6 million cookies to American Red Cross blood donors through our “Be a Good Cookie” program. we unveiled a more targeted social responsibility strategy focusing on hunger relief. while simultaneously exploring ways to address broader societal challenges. he was also one of the great philanthropists of the 20th century. particularly breakfast. Kellogg Company and Kellogg’s Corporate Citizenship Fund (KCCF) provide funding for charitable donations. giving away virtually all of his wealth. Brighter Tomorrows 2012 Corporate Responsibility Report COMMUNITY At Kellogg. Community Development We raised a company record $7. 2012 Corporate Responsibility Report 100 . In early 2013. Founded by Mr.3 million for United Way to benefit communities across the U. We concentrate our philanthropic efforts on the communities where our employees live and work. The W.

Share Our Strength’s No Kid Hungry® campaign and the Food Research and Action Center so that more schools can participate in federally funded breakfast programs. The cash total includes charitable contributions made by some of our individual brands for specific causes. 1 A serving is approximately 1 ounce. including a focus on hunger relief and programs that support breakfast for children and families. In 2012. We are also exploring ways to maximize product donations for people in need and to further engage our employees in hunger-relief service projects. We want to be as strategic with our corporate philanthropy as we are with our business as a whole. we supported a variety of nonprofits and charitable programs. so these investments have the greatest impact where they are needed most. we have committed to providing 1 billion cereal and snack servings1 – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. we have worked to align our community investments with what we do best as a business. As part of this focus. many of which are highlighted on product packages or advertised in stores or through online campaigns. and more measurable. We look forward to sharing more details on this strategic initiative in our next Corporate Responsibility Report. To help these children get a healthy breakfast. we believe that a more strategic approach can achieve even greater. to nonprofit partners Action for Healthy Kids. we revisited our charitable giving strategy with an eye toward further sharpening our focus and creating better alignment between our giving programs and our core competencies.COMMUNITY Strategic Philanthropy Over many years. As the world’s leading cereal company. we launched a new corporate philanthropy initiative in early 2013 – Breakfasts for Better DaysTM – with more targeted goals and investments. As a global food company. While we know that our philanthropic dollars and programs have been doing much good. impact. particularly hunger. We achieved our goal of donating the equivalent of 2 to 2. we believe it is important to support issues relating to nutrition. In 2012.5 percent of pre-tax annual profits through both cash and in-kind contributions. 2012 Corporate Responsibility Report 101 .S. providing $13 million in cash and $39 million in food during the year. we pledged $1 million in grants in the U.

1 million In-Kind Contributions1 2008 2009 2010 2011 2012 $26. except for cookies donated to the Red Cross for its blood drive programs.8 million $4.5 million $24.5 million $9. In-kind donations fluctuate year to year based on a number of factors.2 million $2.7 million $24.1 million 1 Products valued at cost of goods sold (COGS).5 million $11.9 million $2. 2012 Corporate Responsibility Report 102 .COMMUNITY Strategic Philanthropy.5 million $18. Cash Contributions 2008 2009 2010 2011 2012 $9.6 million $11. cont. including the amount of unsaleables.5 million $2.6 million $10.2 million $39.1 million Brand Philanthropy 2008 2009 2010 2011 2012 $3.

The foundation’s integrated philanthropic approach centers on whole child development – ensuring the emotional. the trust and the foundation have enjoyed a longstanding relationship.K. WKKF works with communities to create conditions for vulnerable children so they can realize their full potential in school. Kellogg when he donated most of his fortune – $66 million – to create the foundation’s endowment. with a special emphasis on prenatal months to age 8. as well as with sovereign tribes. which is held by the trust. are in Mexico and Haiti. within the context of families and communities.S. internationally.S. families and communities as they strengthen and create conditions that propel vulnerable children to achieve success as individuals and as contributors to the larger community and society. W. cont. the trust continues to own substantial equity – more than 20 percent – in the Kellogg Company.COMMUNITY Strategic Philanthropy. Kellogg paid more than $135 million in dividends to the trust to support the foundation’s work. The Kellogg Foundation’s priority places in the U. private foundation by our company’s founder.K. social. cognitive. In addition to its diversified portfolio. WKKF works throughout U.K. Based in Battle Creek. Kellogg Foundation (WKKF) supports children. Kellogg. While the company. KELLOGG FOUNDATION The W. The Kellogg Foundation was founded in 1930 as an independent. Mich.K. W. physical. and.. Mississippi. Guided by the belief that all children should have an equal opportunity to thrive. 2012 Corporate Responsibility Report 103 . and internationally. each is governed by its own independent boards of trustees. In 2012. which was set up by Mr. It receives its income primarily from the W. cultural and civic development of young children. New Mexico and New Orleans. are in Michigan. Kellogg Foundation Trust. Special emphasis is paid to priority places where there are high concentrations of poverty and where children face significant barriers to success. work and life.

Keebler will be the official cookie at every Red Cross blood collection operation in the U. Historically. blood donations.000 in Walmart gift cards and a crystal trophy of Ernie Keebler. the Forum judges noted that they “loved that this campaign was not about fundraising. Keebler is donating 6 million cookies per year to the American Red Cross for them to share with blood donors. through at least 2014. which promotes cause-related marketing events and initiatives. In making the award. has donated 55 units of blood to the American Red Cross over four years. The collaboration between the Red Cross and natural one. In 2012. He received a one-year supply of Keebler cookies. The first recipient of the award. for example. our Keebler brand continued the “Be a Good Cookie” program launched the previous year. of Wichita.” The Halo Awards are the organization’s highest honor. the Red Cross has served a cookie to every blood donor as a way to say thank you – and to replenish the body following a donation.S. Jon Beadles. energy and blood to help others in need. allowing the organization to put more resources into better fulfilling its mission.” which is designed to recognize “good cookies” who encourage acts of goodness. the Red Cross purchased the cookies. but about underwriting costs and boosting awareness for both brand and cause. Keebler’s contribution saves the Red Cross nearly $2 million each year.COMMUNITY Brand Philanthropy Kellogg Company’s brands support a broad range of charities and philanthropic activities. Program Award Our “Be a Good Cookie” campaign won a 2012 “Silver Halo Award” for Best Health Campaign from the Cause Marketing Forum. This effort is promoted on about 175 million packages of Keebler cookies each year to provide visibility to. Prior to the Keebler donation. The chosen award recipients are leaders in their communities who donate their time. Through this campaign. In 2012. Keebler and the American Red Cross recognized a blood drive coordinator from Kansas with a new “Ernie Keebler Goodness Award. as Kellogg has partnered with the organization for years to provide assistance during disasters. and encouragement for. $1. 2012 Corporate Responsibility Report 104 .

K. The following are additional examples of our brand philanthropy initiatives in 2012. awards and licensing fees. valued at up to $5. Pop-Tarts®. 2012 Corporate Responsibility Report 105 . parents received a coupon for a free Scholastic book. and Ireland. we support Surf Life Saving Australia and included promotional messages for the organization on cardiopulmonary resuscitation (CPR) training on certain packages of Nutri-Grain® cereal. including 20 grants of $2.. cont.000 for breakfast clubs that will provide close to 1 million school breakfasts. Rice Krispies Treats®. our Be Natural® line of cereals and snack bars has partnered with the organization Landcare Australia since 2010 in an effort to make a positive contribution to our natural landscape.500 each that communities can apply for to build their own community gardens. Be Natural® is investing $250. Scholastic Books In the U. With the purchase of two specially marked Kellogg’s products or one Kellogg’s Tri-Pack at Walmart. Together. Froot Loops®. parents and their children could visit the Scholastic website to choose a favorite book from a selection of hundreds.S. Landcare Australia In Australia. Nine out of 10 children say they are more likely to finish reading a book that they pick out themselves. Eggo®.COMMUNITY Brand Philanthropy. Life Saving Also in Australia. raising more than $475. Give a Child a Breakfast In the U. Be Natural® funded 20 local environmental groups across Australia through an open grants program focusing on community gardens and supporting urban landcare groups. In 2012. Cheez-It®. Nutri-Grain®.000 for grants. information on our “Give a Child a Breakfast” campaign was included on more than 20 million packages of cereal. several of our brands – including Kellogg’s Raisin Bran®. Keebler® and Frosted Mini-Wheats® – joined with Scholastic (a book publishing company) and Walmart to encourage children to choose books they love to read.

Over the course of three weeks. and Canada. Kashi REAL Campaign In December 2012.. Kashi donated $10 to the organization – up to $35. the campaign included social media outreach information on select Special K® packages and on the Special K® website. Coordinated in conjunction with SenosAyuda A. See the Hunger Relief section for more details.and nutrition-based educational programs for elementary and middle school students to inspire healthy eating and help them learn about the origin of their food. Spoons Across America offers food. as part of Kashi’s REAL (Renew Eating And Living) project.COMMUNITY Brand Philanthropy.S. Special K® Breast Cancer Awareness Project In Venezuela.000.C. for each person who helped share Spoons Across America’s message on their personal Facebook page. cont. 2012 Corporate Responsibility Report 106 . Share Breakfast Our Kellogg’s “Share Breakfast” program helps support breakfast for schoolchildren in the U. Kashi sponsored a Facebook campaign. with the nonprofit Spoons Across America to help more people learn about the origins of their food. Special K® supported a breast cancer awareness project that promoted the benefits of early diagnosis.

34 U. Our largest community campaign.K. Our company also donated more than 70.S. As a result.. which has broken down barriers to swimming across the U.K. including sports programs for young people. 3.500 Kellogg employees put their commitment to work through United Way’s “Days of Caring” service projects.000 people get active through swimming. eight of these locations reported increases of more than 100 percent.200 young people were provided with extra swimming lessons. Marquez is well received by and inspiring to children.. has also provided special lessons for disabled children and transportation to pools in rural locations. During the 2012 campaign. our Swim Active program has invested approximately $2.4 million since 2006 in community projects that have helped more than 65. which exceeded our United Way campaign goal by 14 percent. locations reported year-on-year increased donations of 10 percent or more. more than 1. The foundation supports 700 children from impoverished communities. A popular soccer player who formerly was on the Mexican national team and now is a player with Mexican Club León. In 2012. generated a company record $7.000 servings of cereal. sports and education. some of our programs in 2012 focused on physical fitness activities. in support of United Way. Rafa Marquez In Mexico. benefiting nearly 25 nonprofit organizations in our communities. (KCCF).COMMUNITY Community Development & Physical Fitness In addition to our community development initiatives. During 2012. The following are additional examples of our community work in 2012.S. which promotes nutrition. 2012 Corporate Responsibility Report 107 .3 million in 2012 to benefit communities across the U. The program. Kellogg Swim Active became focused on school swimming – something that is part of the school curriculum in England. In addition. includes individual employees’ and retirees’ pledges and dollar-for-dollar matching grants from Kellogg’s Corporate Citizenship Fund. we supported the Rafa Marquez Foundation.000 to the organization. Physical Activity Swim Active In the U. the KCCF contributed $60. The gift.

The program teaches children how to grow. we have contributed more than $450. Approximately 16.COMMUNITY Community Development & Physical Fitness. Education for At-Risk Children In Colombia.000 to the Stephanie Alexander Kitchen Garden Foundation. Since 2009. Stephanie Alexander Kitchen Garden Foundation The Kellogg Australia Charitable Foundation provided $250. which helps schools build gardens and develop curricula on nutrition. In 2012. which supports education for at-risk children. prepare and share fresh and seasonal food.000 children across Australia. harvest. we provided 120.000 runners from five states participated. which reaches about 35. 2012 Corporate Responsibility Report 108 . cont.000 to this organization. Kellogg sponsored a series of 10-kilometer races to encourage healthy lifestyles. 80 percent of our employees volunteered in 2012 with Dividendo por Colombia. Her foundation operates a primary school in Guadalajara for approximately 350 underprivileged students. Education Lorena Ochoa We continued our support of the Fundación Lorena Ochoa.000 servings of cereal as part of their breakfast for children at school program. 10K Races Also in Mexico. a nonprofit in Mexico founded by retired professional golfer Lorena Ochoa. gardening and cooking.

In early 2013. By the end of 2016. Already. Feeding the hungry has long been one of our core social initiatives. Kellogg Company committed more than $500.000 in food to Feeding America. providing food for those who need it is inherent to who we are and what we do. The problem is acute even in developed countries.) Hunger Relief Highlights Food Donations In 2012. educated. we announced a new corporate philanthropy initiative. which is a fundamental building block for healthy. Brighter Tomorrows 2012 CorporateRELIEF Responsibility Report HUNGER Hunger is the world’s biggest health risk. that makes hunger relief – breakfast programs in particular – our signature cause. 2012 Corporate Responsibility Report 109 . more than 870 million people1 around the world – or one out of every eight – lack access to adequate nutrition. (See the Community section for more on our strategy work. From food donations during times of disaster to breakfast programs for schoolchildren. we donated $39 million in products. 1 2 The World Food Programme The goal of 1 billion servings is based on an approximate serving size of 1 ounce. we’re committed to expanding our support of breakfast clubs that provide morning meals and important nutrition to schoolchildren. Breakfasts For Better DaysTM. the long-term sustainability and security of the food supply is becoming an increasingly critical concern. among other donations in 2012.000 to relief efforts. viable communities. according to the World Food Programme.Better Days. And given the rapidly growing global population. Kellogg will provide 1 billion cereal and snack servings – more than half of which are breakfasts – to children and families in need around the world. As a leading food company. we know that the most significant impact we can have on society is through our foods. including $250. Disaster Relief In the wake of Hurricane Sandy.2 Because we believe in the power of breakfast to feed better days and better lives.

we grouped our major corporate responsibility issues into four categories or pillars: Marketplace.S. cont. 2012 Corporate Responsibility Report 110 . Feeding the Future Grains are an efficient food that can play a key role in feeding a growing population. turning food waste into “food rescue. Breakfast Programs Focus on Low-Income Families We launched a website designed to provide nutrition information to low-income mothers in the U. Hunger relief is one of these topics.” Hunger Relief as a Cross-Pillar Topic In 2008. we discuss it here. it has become clear that some topics cut across multiple areas. global corporate responsibility strategy. Environment and Community. in its own section.HUNGER RELIEF Hunger Relief Highlights. Case Study: From Food Waste to “Food Rescue” We’re focused on how we can increase our food donations. when we developed our comprehensive. Because of the cross-pillar nature of this topic. Workplace. We focus our philanthropic work in particular on helping provide nourishing breakfasts for children. As we’ve implemented the strategy and fully embedded it into our day-to-day work.

(Write to corporateresponsibility@kellogg. an effort aimed at raising funds to provide breakfasts for children who are currently going to school hungry.. One of the best ways to get our foods to those who need them is through the global network of food banks.) 2012 Corporate Responsibility Report 111 . We also marked the day by kicking off our “Help Give a Child a Breakfast” campaign in the U. Recently.300 people in need. Many of our employees volunteer their time and talents at local food banks.000 cap. Greece. see the Breakfast Programs section. we have committed to providing 1 billion cereal and snack servings – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. The effort ultimately benefited about 2.S. We also were able to provide the Food Bank in Dublin with a new vehicle for use distributing food. we donated $5 to the GFN for every message of feedback we received on our Corporate Responsibility Reports. Today. France. In our headquarters community in Michigan. an international organization dedicated to creating and strengthening food banks and food bank networks. Ireland. we donate to food banks in Australia. Canada. Guatemala. the GFN supports food bank systems in 23 countries. Germany. up to a $10. In 2010 and 2011. We are also proud to support The Global FoodBanking Network (GFN). Seven Kellogg teams made up of more than 65 employees took part in the 2012 Food Industry Food Sort Challenge to see who could sort and box the most donated food products.K. we have demonstrated a deep commitment to providing food for those in need. Belgium. and the organization has grown significantly in the years since. for example. Denmark. Mexico. our product donations are primarily made through Feeding America. the nation’s largest hunger-relief charity.) We observed World Food Day (Oct. Colombia. Globally. In less than an hour. Italy.000 from Kellogg’s Corporate Citizenship Fund in cash and food to six Latin American food banks and social relief agencies. In the U. (For more on this and other initiatives.com to provide feedback. partnering with Cloudwatcher.000 pounds of food – more than a quarter of which was donated by Kellogg. 16. Kellogg established a corporate food redistribution project in Russia. Spain and the United Kingdom. In Canada. and we are doing so again for our 2012 report. Kellogg helped found the GFN in 2006. Kellogg volunteers sifted through nearly 20. a charity that distributes food in the Russian Federation. nearly 500 employees participated in volunteer projects from June through October in 2012 that supported food-insecure families. 2012) with a number of initiatives around the world. including the donation of $125. We have also been exploring ways to maximize the amount of food we donate so we can make an even greater impact.HUNGER RELIEF Food Donations For many decades. employees from our Ontario headquarters engaged in a friendly competition with other area food companies to help Canadians struggling with hunger. As discussed in the Community section. in addition to other grants..

2012 Corporate Responsibility Report 112 . cont. except for products donated to the Red Cross for its blood drive programs. select Kellogg products at Walmart stores.HUNGER RELIEF Food Donations. one out of every six Americans doesn’t know where their next meal will come from during the course of a year. Department of Agriculture.S. * Products valued at cost of goods sold. which ran from September 17 through October 12. We provided the funding equal to donating 2 million meals through this initiative. Fighting Hunger Together According to the U. In an effort to help. which enabled consumers to help by purchasing select Kellogg products at Walmart stores. We provided the funding equal to donating 2 million meals through this initiative. Kellogg joined with Walmart. which ran from September 17 through October 12. Feeding America and four other major food companies to help provide for those in need. launched during Hunger Action Month in the fall of 2012. We signed on to Walmart’s “Fighting Hunger Together” initiative.

000 to the Red Cross to support victims of the November 7 earthquake in Guatemala.675 pounds of food.000 worth of cereals and snacks to food banks in the Gulf Coast region of the U. to help victims of the flooding that devastated parts of the Krasnodar region of southern Russia in July. to help families whose lives were devastated by Hurricane Sandy by donating two additional semi-trucks full of cereal and snacks to Feeding America.HUNGER RELIEF Disaster Relief In the aftermath of a natural disaster. such as cereals. people often lack the things we all normally take for granted – especially food that is safe to eat and will stay that way. 2012 Corporate Responsibility Report 113 . which is why we are quick to respond with food assistance. worth about $6. Kentucky. Our final food donation was approximately $355. • Kellogg Central America donated $25. snack bars and other packaged snacks.S.000 worth of cereal to Feeding America food banks in several states. • Kellogg Russia provided approximately 1. Indiana. including Kansas. • Kellogg Company Mexico and the Mexican Food Bank Association donated 1 million snacks to help the people in the states of San Luis Potosí and Zacatecas who were affected by droughts. • We donated nearly $150. Our efforts in 2012 included the following: • We committed $500. we partnered with “Anderson Live.000 – half in cash from Kellogg’s Corporate Citizenship Fund to the American Red Cross for overall relief work and the other half in food from the company to Feeding America – to help with relief efforts after Hurricane Sandy struck the Northeast U. • Kellogg Italy donated about $48. we contributed nearly $300.S. to help with recovery efforts following a spate of tornadoes in the early part of the year.” Anderson Cooper’s daytime television program. • Also in the U. coast in October.. we donated approximately $355.000 in food and cash in response to an earthquake in the northern Emilia Romagna region. to help with relief and recovery efforts in New York. In addition.S.000. are typically in high demand. • Following Hurricane Isaac in late August.000 worth of food following wildfires in the West and to help those in flood-ravaged communities in the nation’s Southeast. Ohio and West Virginia.200. Shelf-stable goods.

and that the problem is getting worse. The newest breakfast clubs will provide about 180. In other countries. is our longest-running club program globally and arguably our most robust. Given our company’s belief in the power of breakfast and its nutrition benefits.K. In the years since. Despite the work of Kellogg and other supporters of breakfast clubs. teachers struggle to educate children who come to school hungry. we support and promote “breakfast clubs” that offer meals at school. As the world’s leading cereal company. School-based breakfast clubs are a proven – and costeffective – way to tackle child hunger in the mornings while simultaneously improving students’ academic performance. The breakfast club work in the U. Belgium. the Kellogg’s Corporate Citizenship Fund will fund three more breakfast clubs in Madrid and two other Spanish cities. Four out of five teachers surveyed told Kellogg that their pupils are coming to school hungry.2 million since 1998 in the education charity ContinYou. In some countries. recent reports show that 40 percent of breakfast clubs in cash-strapped schools across England closed during the 2011-12 school year due to insufficient funding. government-sponsored breakfast programs do not exist. Most recently. Canada.S. financial problems have forced many schools to make difficult decisions that often result in the closures of school-based breakfast clubs. We have invested more than $3. are going to school hungry. Furthermore.HUNGER RELIEF Breakfast Programs All too frequently. Kellogg Spain is leading the development of breakfast clubs in that country.000 breakfasts in their first year. Germany. In the fall of 2012.K. Kellogg will provide 1 billion cereal and snack servings – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. Following a very successful pilot project in Madrid. in 1998. New Zealand. we have helped to create and support programs in countries including Australia. In those nations. we released new research that revealed that more kids than ever in the U. including the U. behavior. attentiveness and attendance rates. 2012 Corporate Responsibility Report 114 . We launched our first breakfast clubs in the U.1 In doing so. And nearly a third of teachers admitted to bringing in food for the pupils who have missed out on breakfast. and all around the globe.. The survey of 500 teachers found that children are relying on teacher handouts.K. we now focus the majority of our philanthropic efforts toward breakfast initiatives for children in need around the globe. and schools are increasingly turning to food banks to provide food for breakfast clubs. we will expand our participation in breakfast clubs and similar programs that provide morning meals and important nutrition to schoolchildren. Kellogg Ireland created a partnership with a charity called “Healthy Food for All” to fund a pilot program supporting the establishment of four new breakfast clubs in North Dublin. governments provide breakfast for children who don’t receive a morning meal at home. which has set up more than 550 breakfast clubs – including 52 new ones in 2012 – to deliver more than 3 million breakfasts every year to children who need them most. 1 The goal of 1 billion servings is based on an approximate serving size of 1 ounce. Spain and Sweden.

doi:10. and Ireland. The greatest impact was observed in boys. cont. 2 O’Dea. The Vodafone Warriors.000 Australian kids are going to school with empty stomachs. & Mugridge.” With the program running in the U. Along a similar theme. a national rugby team. In response.K.1093/her/cys069 2012 Corporate Responsibility Report 115 . we committed to raising nearly $500. In New Zealand.A. This startling information inspired Kellogg and Woolworths to embark on a month-long “Breakfast Crusade” headed by former Olympian Melinda Gainsford-Taylor.2 million bowls of cereal to Australian schools and community groups since its inception in 2007. Kellogg provided breakfast for about 800 young people during 2012.HUNGER RELIEF Breakfast Programs. Kellogg Australia teamed with the Woolworths supermarket chain in response to a concerning statistic that nearly 500. over the next two years. J. The new study by a professor from the University of Sydney2 also revealed that children who ate a breakfast of cereal and milk performed better academically than those who consumed nothing at all or who ate other options. A. sends players to visit schools to talk about breakfast. where we also sponsor breakfast clubs. (2012) Nutritional quality of breakfast and physical activity independently predict the literacy and numeracy scores of children after adjusting for socioeconomic status. such as toast or just fruit. FareShare.000 in 2012 and again in 2013 to provide schools with funding for breakfast clubs and to provide 3 million breakfasts through our partnership with the food redistribution charity. which has delivered more than 1. Through this program. Kellogg launched a nationwide campaign. called “Help Give a Child a Breakfast. Health Education Research. we have been working with the Vodafone Warriors One Community “Breakfast Warriors” program to educate kids about the importance of breakfast. The campaign included donations of cereal through the Kellogg “Breakfast Buddies” program.

Share Breakfast For a few years. Every time someone shares a public service announcement featuring Diggs via several social media sites. fewer than half the 19. Kellogg’s Corporate Citizenship Fund and Kellogg Company provided funding to increase the number of children participating in breakfast programs in certain schools in California. Grants awarded by the Kellogg’s Corporate Citizenship Fund allowed Action for Healthy Kids to work collaboratively with school breakfast experts. school leaders. a nonprofit organization dedicated to fighting childhood obesity and undernourishment. where the federal government funds school breakfast programs. This represents a huge opportunity to improve children’s lives and school experiences.4 million children who are eligible for free or reduced-price breakfasts actually take part. Illinois. nearly 70 schools in 25 states received more than $1. actor Taye Diggs joined us to help spread the word about our program. Our goal is to help provide more than 1 million breakfasts to kids during the 2013-14 school year. thanks to the Share Breakfast campaign. In 2012.500 each in grants from Action for Healthy Kids. students.S. In late 2012. Kellogg’s Share Breakfast program has funded grants to Action for Healthy Kids to support kids in need.HUNGER RELIEF Action for Healthy Kids Even in the U. These contributions give school administrators ways to boost the participation rates in government-funded breakfast programs through efforts such as breakfast in the classroom or “grab and go” meals. parents and community stakeholders to help ensure that students receive a nutritious and balanced breakfast to start their day. 2012 Corporate Responsibility Report 116 . Kellogg’s will help share a breakfast with a child in need through a donation to Action for Healthy Kids. During the 2011-12 school year. we provide support for Action for Healthy Kids. Florida.. To help. Kentucky and Ohio.

so we work hard to ensure we have a broad range of foods that earn the WIC seal of approval.S. we want to help needy families and we want to help make WIC a better program. more than 6 million women and children participate in WIC. recipes and materials. WIC’s purpose is safeguarding the health of low-income women. is a good source of fiber (3 grams). lower-sugar cereal that is specifically aimed at WIC participants. 2012 Corporate Responsibility Report 117 . In 2012. Funded by the U. families adopt healthy nutrition habits and encourage greater consumption of affordable fruits and vegetables. we created a new. WIC. Participants receive a monthly voucher that they can use to buy approved foods – including cereals. Our work in this area earned us recognition as a “Fruit and Veggies Role Model” by the Produce for Better Health Foundation. kid-friendly. Each year. in English and Spanish. federal government and administered by individual states. This past year. infants and children up to age 5 who are at nutrition risk. In other words. we have focused on developing other nutrition tools. The program only approves cereals that meet certain nutrition requirements. we boosted the folic acid in two of our cereals to better meet the nutrition needs of pregnant women. we also see a common intent. purchasing an estimated $570 million worth of cereal annually. the website offers recipe ideas.HUNGER RELIEF Focus on Low-Income Families It’s called the Special Supplemental Program for Women. the program aims to improve the health of low-income pregnant women. pediatricians’ offices and retailers. While we see a business opportunity in the program. Launched in 2012. more important. we were proud to offer 15 cereals that met WIC nutrition criteria. made with whole grains and 6 grams of sugar per serving. Infants and Children. to help low-income U. their infants and young children.S. These resources have been distributed to more than 1 million families through WIC clinics. And. In recent years. among other information. We also respond to specific requests from WIC to improve the nutrition profiles of existing cereals. a website designed to bring nutrition information to low-income mothers. Kellogg Company’s purpose is nourishing families so they can flourish and thrive. That’s just one reason why we recently launched Kellogg’s Healthy Beginnings. but it’s better known by its acronym. for example. We plan to launch a Spanish language version in the summer of 2013. which hit store shelves in 2012. Scooby Doo®. nutrition tools and a state-bystate list of WIC-approved Kellogg cereals.

Grains. 2012 Corporate Responsibility Report 118 . are an environmentally efficient food that can play a key role in feeding a growing population. which form the basis of most of our products. please see the Sustainable Agriculture section. Kellogg is actively working with governments. nongovernmental organizations and others in our industry to explore ways to make our foods – and the agricultural practices for our ingredients – more sustainable for the long term and to help make sure there’s enough food to feed the world.HUNGER RELIEF Feeding the Future The world’s population is expected to grow from 7 billion today to an estimated 9 billion by 2050. For more on our work on helping produce grains even more sustainably.

rescued 50 tons of Special K® that couldn’t be used for normal sale after production. This process produces food that is of high quality but is not intended for sale. for Kellogg retail store representatives to collect damaged or expired Kellogg snacks and send them to Feeding America. we aim to “rescue” food that would be diverted – raw ingredients as well as finished products – and donate it to feed people in need.S. Sell-by-dates. don’t mean the product will be bad. we have begun a program to steer these foods instead to food banks. The group takes food in damaged packaging that is not suitable for retail and redistributes it to dozens of community-based organizations. FareShare. they are simply a recommendation for maximum freshness. according to the Food and Agriculture Organization of the United Nations. from retailing to home consumption. we agreed to put our excess trial foods to better use.. This waste. our snacks production site in Wrexham recently started a new relationship with the food redistribution charity. we donated about 5. we kicked off a pioneering partnership with Kroger. a leading supermarket chain in the U. In 2012. For example. an estimated 1. During 2012. and we’re working with our retail partners to find solutions. And our plant in Linares. Mexico. becoming the first food manufacturer in Australia to partner with the charity. (The box may be dented.S. In 2012. These are foods that cannot be sold due to packaging damage. At our Battle Creek plant. donating it to those in need. expiration or discontinuation. meanwhile.000 pounds from animal feed to FareShare in North Wales. sometimes. 2012 Corporate Responsibility Report 119 . which totals about a pound of food per person per day. we were able to divert more than 15. In the U. We know there’s also a big opportunity to increase donations of so-called “unsaleable” products at retail stores in the U.K.3 billion tons of food produced for human consumption is lost or wasted.. in Australia.5 tons of excess trial foods to OzHarvest. To do this. we donate leftover ingredients as well as production runs of products that we manufacture during our research and development phases. millions of people also go hungry each day. occurs all along the supply chain – from agricultural production to manufacturing. but aren’t quite up to our high quality standards. the nonprofit OzHarvest rescues food that would otherwise be discarded. And yet. for example.HUNGER RELIEF Case Study: From Food Waste to “Food Rescue” Every year.) In 2012. these products would likely have been collected for use as animal feed. Local food bank volunteers helped us repackage and label the cereal for donation. On occasion. our manufacturing plants can turn out finished cereals that are perfectly safe and delicious. in stark contrast. we’re making changes within our own operations. which distributed the food to schools for breakfast programs and to other community charities. But more than ever. At Kellogg. The food is in perfectly good condition but the display packaging may be creased or torn. we have for years repurposed food waste from our manufacturing facilities for use as animal feed. we run many trials to make sure we get it right. Typically. but the product inside is still perfectly safe. For example. When we create or reformulate a product.

Our company’s unsaleables policy encourages retailers that receive our products via warehouse deliveries to donate any unsaleable Kellogg foods to Feeding America. Over the past decade. Retail Stores We’re focused on reducing waste from “unsaleables” at the retail end.S. We’re also partnering with other retailers and food manufacturers through the Food Waste Reduction Alliance Project. To address the issue.HUNGER RELIEF Case Study: From Food Waste to “Food Rescue.S. We were the first company to initiate a process that allows the store to donate products distributed through DSD. foods that were damaged or expired at the retail end would have been destined for disposal. which is providing industry support to reduce food waste while increasing food donations. in conjunction with Kroger. damaged or expired products were thrown away. Now.” cont. We have expanded this program to many other retailers in the U. 2012 Corporate Responsibility Report 120 . resulting in about 20 million fewer packages of food wasted annually. we conduct more than 100 week-long audits annually at customers’ warehouses and retail stores throughout North America to determine where we can improve our performance related to these unsaleable goods. Reducing “Unsaleables” at U. we’re reclaiming these unsaleable goods and sending them to Feeding America. Because we typically have to credit retailers for part of the cost of unsaleable products. or DSD. unsaleables have dropped by nearly 50 percent in many of our businesses. In the past. and in accordance with industry practice. however. we have an interest in minimizing the waste of them. any of our direct store delivery. In the past.

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